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Singapore stock market and companies daily report (Oslo Dual Listings, Sembcorp Marine’s unit, COSCO Corp, CapitaMalls Asia) (March 12, 2010)

Contributed by Shares Investment

By Shares Investment

More Oslo Dual Listings In The Pipeline From SGX
According to CEO of Oslo bourse, Bente Landsnes, the Norwegian bourse now has a pipeline of companies considering listing there, including a few SGX-listed companies going for dual listing. The official said so while in town yesterday for meetings with SGX and to attend an energy conference which both Norwegian and Singapore firms in the offshore marine, energy and shipping sectors gave corporate updates. These included SGX-listed Mermaid Maritime, Sembcorp Marine and Otto Marine.
Amongst the potential SGX-listed companies, PT Berlian Laju Tanker – listed in both Singapore and Jakarta – is said to be eyeing an Oslo listing after its proposed acquisition of Norwegian shipping firm Camillo Eitzen & Co is successful. Last month, China Fishery became the latest to seek a dual listing status after it re-submitted its application to Oslo Bors.

Sembcorp Marine Clinches US$130m Petrobras Deal
Sembcorp Marine’s unit, Jurong Shipyard has secured a US$130m contract to carry out pre-conversion works on the very large crude carrier, MT Suva for Petrobras’ Dutch Unit. The vessel is scheduled for completion in 2Q11 before being deployed in the Roncador field offshore Brazil. Shares of the company leapt $0.14 to close at $4.11 yesterday but as the end of 1Q10 looms, the continued lack of substantial new orders is starting to worry analysts. This is just the 2nd new contract announced so far this year and there have been no new rig orders yet.
According to the Business Times, DMG and Partners yesterday downgraded Sembcorp Marine to a ’sell’ while maintaining its target price at $3.51. Citing a sharp run-up in share price since above-expectation results last month, DMG said Sembcorp Marine, with a FY’10 P/E of 14.9x, is now trading at a premium to peers such as Keppel Corp (12.7x) and Korean rig builders such as Hyundai Heavy Industries (7.0x), Samsung Heavy Industries (6.8x) and Daewoo Shipbuilding and Marine (6.1x).
‘The new $130m Petrobras order is positive but YTD (year-to-date) awards lag consensus expectation. The latest order lifted Sembcorp Marine’s YTD new orders to $260m, 10% of our new order estimate for FY’10 but sharply behind consensus expectation of $5b to $7b,’ DMG concluded.

Order Woes Continue For COSCO Corp
COSCO Corp (S) announced yesterday that it has received one order cancellation and yet more reschedulings after it agreed to postpone the delivery of 4 vessels last week. The order cancellation involves a shipping contract for a 80,000 dwt bulk carrier at the request of a European shipowner. Construction of the vessel has not commenced but as part of the order cancellation agreement, the buyer has paid compensation. In addition, orders for four 57,000 dwt bulkers from two Asian shipowners at Cosco Zhoushan and Cosco Guangdong have been rescheduled. The last of the four vessels will now be delivered in April 2012.

CapitaMalls Asia To Replace COSCO Corp In STI From March 22
CapitaMalls Asia (CMA) will replace COSCO Corp (S) as a constituent of the Straits Times Index (STI) from March 22. This follows a half-yearly review of the index, and comes just 4 months after CMA’s market debut. CMA, which listed at $2.12 per share in November last year, has since grown in market cap from $8.2b to $9.09b.
The STI reserve list will comprise – in order of size – Keppel Land, Yangzijiang Shipbuilding, Ascendas REIT, Yanlord Land and Parkway Hldgs. These will replace any constituents that become ineligible as a result of corporate action before the next half-yearly review.

This article is contributed by Shares Investment. Visit Sharesinv.com for the latest Singapore, Malaysia and China stock market news and reports.