January 27, 2011

SAPCRES - MIDF ups EPS estimate for SapuraCrest

Stock Name: SAPCRES
Company Name: SAPURACREST PETROLEUM BHD
Research House: MIDF

MIDF Research has raised earnings per share (EPS) forecast for SapuraCrest Petroleum Bhd by 1.98 per cent to 20.12 sen, given its strong orderbook of nearly RM9 billion.

It has also increased the target price of the stock to RM3.95 from RM3.20 previously.

"SapuraCrest remains one of our sector's top picks given its strong order book and its dominance in the local drilling and installation of pipelines and facilities market with over 60 per cent share," it said in a note today.

It said SapuraCrest was one of the front-runners for the Cendor and Berantai projects.

"Given its good track record and ownership of strategic assets, SapuraCrest is also a potential beneficiary of Petroliam Nasional Bhd (Petronas) upcoming contracts," it said.

"Its unit, TL Offshore Sdn Bhd, was recently awarded a RM96 million contract from PC Myammar (HK) Ltd, a subsidiary of Petronas," it said.

MIDF said the contract was expected to contribute positively to SapuraCrest's earnings for financial year 2012. -- BERNAMA

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