Apr[6] - Offshore Review

Recovery on oil price injected some support to offshore sectors. Keppel Co is enjoying valuation premium hardly seen among its peers. Current price, 6.88 translates to PE ~ 16 and PB ~ 1.06. It was awarded contract to build fourth water desalination plant of Singapore. Potential stakes sales of M1 could strengthen its cash flow as well.

Sembco Ind is still trading under its book value (3.75). Its overseas power plant business would be major growth factor while offshore segment still under pressure. Lately US District Court gave favorable judgement towards both offshore counters involved in Brazil Sete saga. Both counters are showing side way trend in price movement. Any further impairment loss and debt condition shall be the focus on coming results announcement.