A Decent-sized Order Win To Kick Off The Turnaround Story
SMM announced that it had won a contract for a WTIV scheduled for delivery in early 25. We estimate that this contract win is worth approximately S$600m and could be as large as S$800m depending on the specifications. Note that this is SMM’s first contract win since its announcement of modification work for a Floating Production Storage and Offloading vessel in Brazil in Jun 21. Maintain BUY. Target price: S$0.11.