Tanker Rates Skyrocket To Fill Colonial Pipeline Shortages
By Elizabeth Low (Bloomberg) Oil tanker charter rates skyrocketed in the U.S. with refiners scrambling for ships to store fuel that has nowhere to go due to a cyberattack on...
UOB KayHian (Thailand) says jack-up rig orders are “roaring” while containership ordering has begun. The house upgrades Keppel Corp. (BN4.SG) to Buy from Sell, raises its target to S$13.00 from S$9.70, and ups its O&M pre-tax margin assumptions for 2012 and 2013 by 1.5 percentage points from 13.5% to 15.0%. It also raises its 2011 contract win forecast (excluding Petrobras) to S$7 billion from S$4 billion.
The house keeps SembCorp Marine (S51.SG) at Hold and raises its target to S$4.90 from S$4.60; “while our contract win assumptions for SMM have also been raised, we maintain our margin assumptions at 15.0% for 2011 and 13.0% for 2012 and 2013.” The house notes containership contracting (orders for new ships) is at the beginning of a cyclical upturn, well below last cycle’s peak in 2007, with the container segment expected to have the healthiest demand-supply balance in 2012/13; “among the shipyards under our coverage, we see Yangzijiang Shipbuilding (BS6.SG) as the best play on containership orders.” It keeps a Buy call with an unchanged S$2.37 target.
By Matthew Allen, (c) 2011 Dow Jones & Company, Inc.
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