0554 GMT 10 October 2012 [Dow Jones] STOCK CALL: DMG & Partners estimates the value of the two OSCV orders STX OSV (MS7.SG) received fromSiem Offshore at NOK1.3 billion, or about US$227 million. It estimates the orders boosted year-to-date order wins to NOK9.6 billion, or 80% of the house’s full-year forecast of NOK12 billion and the unbilled orderbook to NOK20.5 billion. It notes OSCV demand is strong, with Siem Offshore a repeat customer; in addition to the new orders, STX OSV is building two OSCVs in Norway and two PSVs in Brazil for Siem Offshore, it says. “We like STX OSV for its strong execution, growing order book visibility and positive order outlook.” It keeps a Buy call with S$2.02 target. Separately, OCBC also estimates the contract value at NOK1.3 billion; it expects NOK12 billion-NOK14 billion in new orders over the next 12 months and keeps its forecasts unchanged; it rates the stock at Buy with S$2.00 fair value. The stock is up 1.0% at S$1.585 in strong volume.
[I]Leslie Shaffer, © 2012 Dow Jones & Co[/I]