Sembcorp Marine - Clearing Headwinds
- Sembcorp Marine (SGX:S51) expects 1H22 to be significantly better than 1H21 (loss: S$647m), but we think returning to profitability could take some time.
- Sembcorp Marine is venturing into niche defence segment with repair jobs from the US navy, while finalising contract for a Brazilian naval petrol vessel by Jun 22.
- Sembcorp Marine's net orderbook rose 34.6% q-o-q from S$1.3bn in 4Q21 to S$1.75bn in 1Q22.
- Following the delivery of six vessels, including the Johan Castberg newbuild FPSO to Equinor in Feb 22, Sembcorp Marine improved its net gearing from 0.49x in 4Q21 to 0.38x.
- We project S$2bn order wins for FY22F. Reiterate HOLD call for Sembcorp Marine with a S$0.09 target price. Our target price is based on 0.8x FY22F P/BV (3-year historical average).
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
LIM Siew Khee CGS-CIMB Research | Izabella TAN CGS-CIMB Research | https://www.cgs-cimb.com 2022-05-18 2022-05-18
Read also CGS-CIMB's most recent report:
2022-06-29 Sembcorp Marine - More Reprieve For Balance Sheet To Come
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