Swissco’s faster-than-expected liftboat contract takes analysts by surprise

Its first unit will be deployed within two years.

CIMB analysts were positively surprised by Swissco’s faster-than-expected entry into the liftboat segment, after the mainboard-listed offshore and marine firm revealed that it has ordered its first liftboat for  around US$56m ($70.62m) from a Southeast Asian shipyard.

The liftboat is expected to be in operation within a couple of years, enabling the firm to leverage on the rising demand for liftboat services in Southeast Asia. The unit will be able to operate in water depths of up to 70 m and has accommodation for 120 offshore personnel.

According to CIMB, the specs are similar to Ezion’s 320ft-length liftboat, and Swissco’s fast entry into the liftboat segment is positively surprising.

“With the group’s explosive growth and ability to connect the dots ala Ezion, we recommend investors to back the “master”. After all, Ezion’s seeds germinated in KS Energy, which was one of the pioneers for rig and liftboat leasing. That essence is now effectively in Swissco following recent corporate actions. Faster-than-expected contracts could catalyse the stock,” noted the report.