Hallin Marine shares fall on H1 update

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Shares in Hallin Marine slump more than 28 percent after the provider of subsea services to the oil and gas industry reports a fall in margins year-on-year in its first-half trading update.

The company says the trading environment has become increasingly difficult and it expects margin pressures to continue into the second-half.

“The shares will clearly react negatively to this announcement,” finnCap says in a note.

The broker slashes its dollar forecasts as a result, with headline profit estimates moving to $18.6 million from $28.6 million, and it alters its dollar/sterling exchange rate to $1.65, from $1.46, resulting in EPS moving to 20.8 pence from 35.8 pence.

However, finnCap notes the shares trade at a 45 percent discount to the sector and sees significant improvement in 2010.

uk.reuters.com

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