In a Wednesday report, analyst Lim Siew Khee says she believes SMM has the upper hand over DSME in terms of cost by being nimble to customise, as evident in its recent contract from Shell to build and integrate the hull, topsides and living quarters of the Vito semi-submersible floating production unit (FPO).
SINGAPORE (Aug 30): CGS-CIMB Research is maintaining “overweight” on the offshore & marine (O&M) industry while highlighting Sembcorp Marine (SMM) as its top “add” pick in Singapore with a target price of $2.52, based on 2.2 times CY18F price-to-book value, its five-year average.
SMM and South Korea’s Daewoo Shipbuilding & Marine (DSME) are the last two contenders for Chevron’s Rosebank project on the UK Atlantic Margin. The floating production storage & offloading (FPSO) project comes has an estimated contract value of US$1.4-1.5 billion ($1.9-2 billion).
