SembMarine’s US$145 mil addition to orderbook within expectations

SINGAPORE (Sept 12): CIMB Research is maintaining “neutral” on Sembcorp Marine (SembMarine) with an unchanged price target of $1.65, which is based on 1.3 times price-to-book value (P/BV) -- the stock’s average P/BV before early-2010’s crude oil price rally.

This follows yesterday’s news of the marine and offshore engineering group’s wholly-owned Brazilian subsidiary, Estaleiro Jurong Aracruz, securing US$145 million ($194.7 million) worth of hull carry over works (hull COW) from Tupi BV.