March 5, 2012

SapuraCrest Petroleum: Maintain Buy - OSX to build a PLSV for Petrobras' job

Stock Name: SAPCRES
Company Name: SAPURACREST PETROLEUM BHD
Research House: MAYBANKPrice Call: BUYTarget Price: 5.62



Maintain Buy, RM5.62 TP has upside potential. OSX will build and deliver a third PLSV to the SapCrest-Seadrill JV for the latter's USD1.4b Petrobras contract in Brazil, thus fulfilling the contract's local content requirement. While earnings contributions are positive longer-term, we gather that it is crucial that these vessels are delivered on time. Our RM5.62 TP for SapCrest excludes contributions from its 49% stake in FPSO Berantai. Incorporating this would lift our TP to RM5.94.

Maybank Research - 5 March 2012

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