Brokers' take

Singapore Offshore & Marine | Market Weight

UOB Kay Hian Research, May 20

THE latest newswire reports suggest a possible turning point in Brazil. Sete Brasil's restructuring plan has received shareholders' approval. Its rig-building programme will most likely be reduced from 29 to 15 units.

Orders with Keppel and Sembcorp Marine (SMM) appear to be fully maintained. Sete Brasil showed plans to renegotiate up to US$4.5 billion of debt, including US$1.2 billion in late payments owed to shipyards.

A quarter of our projected 2016 net profit is from its drillships for Sete Brasil; a smaller 9 per cent of Keppel's projected 2016 earnings are from Br…