SembMarine (S51.SG) is +1.6% at a 4-session high of $5.07 on optimism over the rig builder’s growing orderbook, which could expand by up to US$1.2 billion ($1.6 billion) if repeat customer Noble Corp. (NE) exercises its options under their latest contract.
The drilling group has just awarded US$400 million orders to SembMarine to build 2 rigs and options for another 4.
“Noble has previously stacked 10 of its older jack-ups and, given the high demand for high-end jack ups in the market, we believe we can expect Noble to carry out its options on the additional four rigs next year,” says RBS, which has a Buy call with a $5.50 target.
JPM, which has an Overweight call with a $5.30 target, says SembMarine has met its 2010 goal of $3 billion new orders. Resistance is at the $5.20 52-week high.
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