Kencana, which had been suspended together with SapuraCrest to facilitate the merger exercise, announced yesterday that its 100%-subsidiary, Kencana HL SB, has received a letter of award on 20 April 2012 from Murphy Sarawak Oil Co., Ltd. for the fabrication of offshore topsides. The contract is for the provision of engineering, procurement, construction and commissioning (EPCC) of Serendah Production topsides facilities for the SK309/311 SPSA development project, which is part of Murphy Sarawak’s SK309/SK311 oil fields development located offshore Bintulu, Sarawak. The contract value is estimated to be around RM460m-RM474m and the offshore topsides are expected to be delivered by 2QCY13.
OUR TAKE
Positive news flow but we are unlikely to change our FY13-FY14 forecasts. This is because we had earlier factored in some orderbook replenishment for the merged entity.
Listing of SapuraKencana Petroleum (SKP) Bhd shares expected on 17 May 2012. This is based on the information extracted from Reuters recently, although it was announced to the Bursa Malaysia that the existing shareholders of both entities should expect their cash repayment and listing of new SKP shares to be completed latest by 21 May. It was also mentioned in Reuters that the listing price is expected to be RM2.30, which is close to our calculated value of RM2.24.
Maintain Buy. Our fair value for SKP is RM2.88 based on a FY13 PER of 20x, which is in line with the average PER of the big cap O&G companies listed on Bursa Malaysia. We remain bullish on SKP as it is now a full-fledged engineering, procurement, construction, installation and commissioning (EPCIC) O&G provider. Thanks to this business model, it is poised to target bigger and more lucrative O&G projects in and outside Malaysia.
OUR TAKE
Positive news flow but we are unlikely to change our FY13-FY14 forecasts. This is because we had earlier factored in some orderbook replenishment for the merged entity.
Listing of SapuraKencana Petroleum (SKP) Bhd shares expected on 17 May 2012. This is based on the information extracted from Reuters recently, although it was announced to the Bursa Malaysia that the existing shareholders of both entities should expect their cash repayment and listing of new SKP shares to be completed latest by 21 May. It was also mentioned in Reuters that the listing price is expected to be RM2.30, which is close to our calculated value of RM2.24.
Maintain Buy. Our fair value for SKP is RM2.88 based on a FY13 PER of 20x, which is in line with the average PER of the big cap O&G companies listed on Bursa Malaysia. We remain bullish on SKP as it is now a full-fledged engineering, procurement, construction, installation and commissioning (EPCIC) O&G provider. Thanks to this business model, it is poised to target bigger and more lucrative O&G projects in and outside Malaysia.
No comments:
Post a Comment