[LEFT]0722 GMT 5 April [Dow Jones] STOCK CALL: CIMB lifts its forecast for SembMarine’s (S51.SG) 2012 order wins to S$8.5 billion after the company landed a US$218.5 million fast-track jack-up-rig contract from Gulf Drilling for 1Q13 delivery; “SembMarine’s spare capacity has apparently helped it beat Keppel (BN4.SG) to this contract, though the latter had built some rigs for Gulf Drilling before.” It notes Keppel’s yard will be kept busy through 1H14, while SembMarine still has capacity for one or two more projects for 2013 delivery. It tips the latest contract’s EBIT margins could exceed 20% given the short production time, with the pricing about 3% higher than a similar unit SembMarine was awarded in February. It notes the latest contract brings SembMarine’s year-to-date orders to S$2.7 billion and the net orderbook to S$7.8 billion. It tips accumulating the stock on recent weakness, expecting further rig-ordering frenzy in the next few months.CIMB raises its target to S$6.32 from S$6.28, and keeps an Outperform call. The stock is up 0.6% at S$5.26.
[I]- Leslie Shaffer, Dow Jones Newswires [/I][/LEFT]