Swiber - Rescue the share price

Perspective from two analyst on their latest move into sale and lease back agreements with asset light funding strategy. The sell down momentum is still very strong. Can this rescue the share price which is technically consider very oversold?

DBS Group Research . Equity
We expect the sales-and ease back agreement to strengthen Swiber's balance sheet, and to alleviate any lingering concern on financing constraint for its new deepwater drilling business.

As a recap, we have presented in previous reports that the group has already secured the bulk of financing needs for its impending constructions of more offshore vessels and the Equatorial deepwater drilling vessel.


CIMB
Successful financing could alleviate financing concerns.

We believe that Swiber’s ability to raise funds at similar terms with previous lease agreements could alleviate the financing fear which caused the drop in its share price recently.

In addition, the delay in announcement of Equatorial Driller construction yard also posted concerns that Swiber may not be able to get a back-to-back contract for the driller to finance the construction.

We believe that with some financing plans in store, we are likely to see construction yard announcement to follow.