Will STX OSV continue its winning streak?

The Singapore-listed offshore builder will likely rack up more contracts after its back-to-back wins.

High oil prices are boosting oil firm budgets and, consequently, driving demand for more subsea vessels, explains DBS, and STX OSV stands to receive a big share of the order spike due to its sterling reputation.

Here's more from DBS:

Two subsea contracts in a row. STX OSV announced two newbuild order wins
from repeat customers last night, including:

1) One advanced subsea support vessel for Island Offshore worth more than NOK 500m (approx. US$87m). The vessel will be built based on Rolls Royce’s UT 737 CD design. Delivery is scheduled from STX OSV Brevik in Norway in 1Q 2014.

2) One Offshore Subsea Construction Vessel for DOF amounting to c. NOK 650m (approx. US$113m). The vessel will be built based on OSCV 11 design, developed by STX OSV in Ålesund, Norway. Delivery is scheduled from STX OSV Søviknes in Norway in 2Q 2013.

As industry fundamentals continue to improve on sustained high oil prices and increasing E&P budgets of oil companies, STX OSV also sees increasing demand for AHTS, OSCVs subsea and other specialised vessels. The latest wins amounted to NOK1.15bn or c. US$200m, forming 11.5% of our order win assumption NOK10bn. We expect more contract wins to come in months ahead.

We continue to like STX OSV for its dominance in the design and construction of complex and highly customised OSVs, solid execution and track record.