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Tuesday, March 17, 2009

Lower oil prices may pull down SapuraCrest earnings by 23% (Star)

Oil and gas services company SapuraCrest Petroleum Bhd’s earnings for fiscal period 2010 to 2011 may drop 20% to 23% due to the impact of lower oil prices on its business, said Citi Investment Research.

The research house has also cut its target price for SapuraCrest stock by 12% to RM1 based on the projected lower earnings.

But Citi Research said it “remains optimistic that the company stands a good chance” of bagging the US$1bil Shell Gemusut deep-water contract in Sabah.

 

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