SINGAPORE (Nov 1): CIMB and OCBC are maintaining their “buy” calls on Sembcorp Marine given oil prices have firmed slightly and upstream oil and gas investment activities have started to show signs of improvement.

CIMB says excitement for Sembcorp Marine will come in 2018 as order wins could be key catalysts, after forecasting $2.5 billion of orders for 2018. FY17 results are expected to be bad though due to weak operating leverage.

Based on known tenders, CIMB estimates SembMarine is gunning for US$6 billion ($8.2 billion) worth of sizeable and high-profile non-rig projects.

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