November 25, 2010

PETRA - OSK Research: Petra Perdana to break even by 4Q

Stock Name: PETRA
Company Name: PETRA PERDANA BHD
Research House: OSK

KUALA LUMPUR: OSK Research said PETRA PERDANA BHD []'s'' 9MFY10 results were within its'' expectations, with a cumulative net loss of RM53.1 million year-to-date.

'We expect the company to break even by 4QFY10, unless the monsoon season turns out worse than expected and cause some of its contracted vessels being put on hold,' it said on Thursday, Nov 25

OSK Research said the lower 3QFY10 net loss of RM23.7 million gave a good indication that the worst for the company may be over. The better q-o-q results were contributed by 1) higher utilization of vessels, and 2) lower mobilization costs during the quarter.

'Nevertheless, we think the share price may have hit bottom and hence are upgrading our call to Trading Buy, with a target price of 94 sen,' it said.


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