We are particularly concerned about the shallowwatersegment 5,0007,000bhp given that the vessels on the order bookrepresent33 of the current fleet in this segment.Jaya would be highly affected given its unique model. Although Singapore yards not receivesharplyhigher semisub orders from Petrobrass expansion due to competitionwithBrazilian yards, we still expect incremental orders over the next few quarters, and willbeadjusting our estimates accordingly after we see the quarterresults.Defensive bet in these uncertaintimes. This new rig is scheduledfordelivery in 4Q2011.First deepwater semisub for Scorpion. With its rapid expansion, we expect the companytoaccount for 15. 5 market share as of FY10.
Wemaintain our Buy rating with 12month NAVbased price target ofS13. 20. Key risks include poor execution,lowerthanexpected newbuild orders, and significantly lower oilprices. SEMBCORP MARINE, ml maintain BUY with target price 2. 90CFG has announced the acquisition of three purse seine fishing vesselsinPeru for US11.
The change would be made over the nexttwofishing seasons. The Liviaprojectis located within walking distance from the Pasir Ris MRT station andisclose to many shopping and entertainment areas such as White Sands,Ikea,Courts, Giant Hypermarket and E! hub at Downtown We have cautious view on NOL stock but see the followingupside risks 1 higher rates andor better control 2 recoveryinTranspacific trade ahead of expectations and 3 slow ANDES, cimb maintain OUTPERFORM with target price 14. 05Overwhelming response to soft launch of Livia. This is Scorpions firstdeepwatersemisub and will be chartered to Petrobras for six years for aboutUS1. 1bn.
The NetCo contract should beawarded inAugust the OpCo contract in 2009. We expect NetCo, which will provide fibre backbone, to provecapitalintensive. We initiate coverage with BUY recommendation. The zonal segregation basedonthe Aqua, Action, Garden and Leisure themes is the unique and appealingfeature of this project. Li Heng has emergedasone of the largest highend nylon fibre manufacturers in China with anannual production capacity of 92,400 tonnes in FY07. Locals formed themajority of the buyers while foreign buyers came from China, Indonesia,India, Malaysia and the Philippines.
On the constructionside 27out of AHTS vessels in2009that will have negative effect on charter rates and vessel prices. Risingraw material will put margins under pressure. The higher value stems from the secondrigsmore sophisticated specifications for its dynamic positioning system tofacilitate operations in harsher environments and deeper water depthsof10. 000ft. Our 12monthtarget price of S0. 845 implies FY08 PE and FY09 PE. NOL, gs maintain SELL with target price 0. 921. 03Acquisition of three vessels in Peru.
