Company Name: PETRA ENERGY BHD
Research House: AFFIN
KUALA LUMPUR: Affin Investment Bank Bhd Research has maintained its Buy call on PETRA ENERGY BHD  after the company signed a MOU with Labuan Shipyard & Engineering Sdn Bhd to utilize Labuan Shipyard's facilities at Victoria Harbour, Labuan for its fabrication activities.
Under the MOU, the two parties may also explore areas for cooperation to collaborate on projects pertaining to leasing of fabrication yards, fabrication works and storage facilities.
Affin Research said in a note Friday, June 3 that it was neutral on the signing of the MOU as it was an ordinary business arrangement that allows Petra Energy to lease the required yard space to support its RM400m Petronas Carigali HUC work at a stable, pre-agreed rental rate.
'We maintain our Buy rating on Petra Energy with an unchanged TP of RM1.89, based on 12x CY12 PE.
'We continue to like Petra Energy given: (i) our expectation for more HUC, topside maintenance jobs to be awarded in FY11-12; (ii) Petra Energy's established track record in integrated brown field services give them a competitive advantage in contract bidding; and (iii) its RM900m unbilled sales provide visible contract billings for the next 2 years.