Shares of Sembcorp Marine Ltd fell as much as 5 percent after the rig builder's quarterly earnings declined 25 percent and brokers lowered their target prices.

OCBC Investment Research cut its target price to S$5.12 from S$5.70, but kept its hold rating, as it lowered its operating margins assumptions for 2012.

However, the broker cited Sembcorp's management as saying enquiries for deepwater rigs remain strong and the earliest deliveries for jack-up and semisubmersible rigs will be in 2014 and 2015 respectively.

Sembcorp's shares shed 1.7 percent to S$4.70, recovering from an intraday low of S$4.53. They have gained 23 percent so far this year.

DBS Vickers also cut its target price on Sembcorp to S$5.60 from S$5.85, as the firm's first-quarter earnings disappointed due to slower orderbook recognition and lower margins.

However, DBS maintained its buy rating, as it expects Sembcorp's earnings to improve over the year as it regognises more of its orders.

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1052 (0252 GMT)

(Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com)