Stock Name: PETRA
Company Name: PETRA PERDANA BHD
Research House: OSK
Company Name: PETRA PERDANA BHD
Research House: OSK
OSK Research has maintained its overweight position on the local oil and gas (O&G) sector as it believes the impact on the crude oil price will not be so severe due to tensions in Egypt.
Its top "buy" picks are Kencana with a target price of RM3.05, Petra Perdana RM1.57, Petra Energy RM2.16 and Alam Maritim RM 1.80.
In a research note today, OSK said, a minimal local O&G companies have exposure in the Middle East. "So far, we can think of only two that have exposure in the Middle East, but then again they are not in Egypt," it added.
The companies are KNM, which has manufacturing plants in Saudi Arabia and Dubai and Alam Maritim, that has chartered some vessels to Middle Eastern customers.
"We do not see the threat of unrest affecting its activities as they are in different geographical locations, one on land and the other in water," it explained.
It also remained unchanged on the oil price assumption for 2011 and 2012 at US$80-US$90 per barrel and US$90-US$100 per barrel respectively.
"However, we may increase our range in the event there is significant and prolonged unrest in the Middle East or if it spreads across a few countries with high petroleum reserves," the research house said.
Following a period of tension, Egyptian president Hosni Mubarak stepped down recently, which somewhat capped the surge in oil price. -- Bernama
Its top "buy" picks are Kencana with a target price of RM3.05, Petra Perdana RM1.57, Petra Energy RM2.16 and Alam Maritim RM 1.80.
In a research note today, OSK said, a minimal local O&G companies have exposure in the Middle East. "So far, we can think of only two that have exposure in the Middle East, but then again they are not in Egypt," it added.
The companies are KNM, which has manufacturing plants in Saudi Arabia and Dubai and Alam Maritim, that has chartered some vessels to Middle Eastern customers.
"We do not see the threat of unrest affecting its activities as they are in different geographical locations, one on land and the other in water," it explained.
It also remained unchanged on the oil price assumption for 2011 and 2012 at US$80-US$90 per barrel and US$90-US$100 per barrel respectively.
"However, we may increase our range in the event there is significant and prolonged unrest in the Middle East or if it spreads across a few countries with high petroleum reserves," the research house said.
Following a period of tension, Egyptian president Hosni Mubarak stepped down recently, which somewhat capped the surge in oil price. -- Bernama
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