Kreuz

Kreuz: Grp has clinched two subsea installation contracts worth US$15.5m (S$19m) for projects in Asean., the first is a US$10m project from a third-party client that will begin immediately and the second a US$5.5m installation job was awarded by the Swiber Group. It is scheduled to start in Q2/Q3, with completion expected in 3Q13. With latest order, grp’s current orderbook stands at approx US$220m, which underpins earnings visibility till 2014. Recall Kim Eng note that that recent conversation with Swiber's mgt indicates that offshore construction contracting activities remain strong. There are gushes of contracts coming out from Mexico (Pemex) and India (ONGC). Other promising areas which Swiber is bidding for projects include Indonesia, Myanmar and Thailand where about USD5b worth of contracts relevant to Swiber are available for bidding. We do not rule out that some of these contracts could potentially flow down to Kreuz (Swiber’s associate)