Sembcorp Marine Shares Gain on $640 Million Drilling Rig Order

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Sembcorp Marine Advances on $640 Million Rig Order (Update1)

By Quah Chin Chin
July 1 (Bloomberg) -- Sembcorp Marine Ltd. , the world's second-largest maker of oil rigs, rose the most in amonth in Singapore trading after saying its unit won a $640 millionorder to build a drilling rig.
The shares rose 14 cents, or 3.5 percent, to close at S$4.18, thebiggest gain since May 29. The stock, the best performer on the Straits Times Index today, has risen 3.5 percent this year, compared with the 16percent drop in the key gauge.
The order for a semi-submersible rig from Larsen Oil & Gas Group brings Sembcorp Marine's new contracts this year to S$2.8 billion($2.1 billion), putting it ``on track'' to match the S$6 billion oforders secured last year, JPMorgan Chase & Co. analysts Winnifred Heap and Ying-Jian Chan said in a report today.
``We expect the orderbook momentum to be robust,'' the analystssaid, keeping their ``overweight'' rating on the stock.
Larsen Oil awarded the rig contract to Jurong Shipyard , its fourth straight order placed with the Sembcorp Marine unit.The rig is expected to be delivered in April 2011.
To contact the reporter on this story: Quah Chin Chin in Singaporeat qchinchin@bloomberg.net Last Updated: July 1, 2008 05:48 EDT