A report that Petrobras has reversed its requirement for seven PLSVs to be built in Brazil to possibly just one bodes well for STX OSV, CIMB says.
“The news bodes well for STX OSV, allowing its European and Vietnam operations to participate in the Brazilian buzz (less the overheated environment). Already, its current Brazil yard is booked until end-2013 and faces space constraints for building multiple units in larger categories.
CIMB estimates the newbuild values at US$200 million-US$350 million ($249 million-$436 million) for each vessel; it expects the results of the PLSV bids by end-year. The house notes Petrobras has shown greater urgency to meet its production target, as it has also accelerated its FPSO-integration awards.
CIMB keeps its FY12 order expectations for STX OSV at NOK10 billion, with 77% secured. It keeps an Outperform call with $2.09 target. The stock is up 1.9% at $1.61, extending Monday’s 3.9% rise in strong volume.
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