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Wednesday, September 7, 2011

HwangDBS Positive On Alam Maritim's Long Term Contract

KUALA LUMPUR, Sept 7 (Bernama)-- HwangDBS Vickers Research is positive on the latest long-term contract awarded by ExxonMobil Exploration and Production Malaysia Inc to Alam Maritim Resources Bhd.

The RM220.8 million contract is for the chartering of an accommodation vessel and a Anchor Handling Tug. The contract comes with a three-year firm period and an extension option of another two years.

"We are positive over this latest long-term contract which is estimated to contribute RM44 million per annum, as it is likely to maintain its current high fleet utilisation," the research firm said in a statement today.

HwangDBS Vickers Research is also maintaining its earnings forecast and "buy" call on Alam Maritim Resources with RM1.00 target price, implying a 37 per cent upside potential.

It also said that financial year 2012 will be the company's year to showcase its strong earnings visibility, driven by high vessel demand and more installation jobs.

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