Stocks News: Hallin Marine Up After Contract Win

28 July 2009

Shares in Hallin Marine gain 5.5 percent as the provider of subsea solutions to the oil and gas industry wins a $6.5 million contract for the Hallin operated vessel the Sanko Angel with a major oil and gas operator.

Evolution Securities repeats its "add" rating on the stock, saying in a note this is a useful contract for Sanko Angel well into the fourth quarter, and underpins its 2009 forecast.

The broker says that according to the company, the contract was anticipated in the recent trading update and therefore there is no change to its 2009 forecast which was adjusted at that time.

Evolution says the stock looks "very undervalued" partly, in its view, due to the lack of visibility for second-half 2009 and into 2010.

"Therefore, contract wins such as this give greater clarity on our forecast numbers which should improve sentiment going forward, especially if subsea activity rebounds in line with the oil price recovery," Evolution says.