OSK Research and Hong Leong Investment Bank have maintained "buy" call on SapuraKencana Petroleum as there are ample
opportunities to beef up its orderbook in coming months.
Despite having a strong orderbook, the oil and gas service provider still has room for new orders, especially from Petronas, which should be ramping up local explorations and production capital expenditures, OSK Research said.
"This is to temporarily substitute the production loss at Petronas' Sudan operations," it said in a research note today.
Hong Leong Investment Bank said it was positive on SapuraKencana Petroleum, which was recently awarded a contract for the charter of vessels to undertake heavy lifts in the Gulf of Mexico region.
It said the contract was in line with its view that SapuraKencana Petroleum was a proxy to global growth in offshore oil and gas production expansion.
"It also reaffirmed our expectations that the company is in an excellent position to secure more contracts," it said in a separate research note.
Meanwhile, Kenanga Research said SapuraKencana Petroleum was one of the main beneficiaries for new fabrication tenders coming up for the Dulang in offshore Terengganu, Semarang (offshore Sabah) and Bokor (offshore Sarawak) oilfields.
"We do not rule out another marginal field participation given that SapuraKencana Petroleum is one of the domestic oil and gas companies that has a big market capitalisation and skill sets to cater to most of the development stages of the oil and gas value chain," it added.
OSK Research has maintained RM2.88 fair value on SapuraKencana Petroleum. Hong Leong Investment and Kenanga Research's target price on the company was unchanged at RM2.77 and RM2.79, respectively. -- Bernama
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