Stock Name: PERISAI
Company Name: PERISAI PETROLEUM TEKNOLOGI
KUALA LUMPUR: Perisai Petroleum Teknologi Bhd's move to dispose of the remaining 50 per cent stake in SJR Marine (L) Ltd to EOC Ltd was viewed as 'positive' by Hong Leong Investment Bank.
"The disposal will lower debt as the jackup rig is scheduled for delivery in mid-2014, which we believe would be a robust market for drilling during the period.
"The put call option will help to reduce cash outflow when the rig is delivered in mid-2014," the research house said in a note today.
Assuming rig utilisation at 80 per cent and daily charter rate at US$160,000, the topline contribution from the rig would be RM140 million while contribution from the pipelay barges would only be RM67 million, it said.
"Thus assuming that both the rig and pipelay vessel have similar margins, earnings could increase several fold.
"We are positive on the recent proposals as the company is sensible in managing gearing at the same time ensuring that earnings will be enhanced," Hong Leong said.
The research house has maintained a "buy" call on Perisai Petroleum with unchanged target price of RM1.55. -- BERNAMA
Company Name: PERISAI PETROLEUM TEKNOLOGI
| Research House: HLG | Price Call: BUY | Target Price: 1.55 |
KUALA LUMPUR: Perisai Petroleum Teknologi Bhd's move to dispose of the remaining 50 per cent stake in SJR Marine (L) Ltd to EOC Ltd was viewed as 'positive' by Hong Leong Investment Bank.
"The disposal will lower debt as the jackup rig is scheduled for delivery in mid-2014, which we believe would be a robust market for drilling during the period.
"The put call option will help to reduce cash outflow when the rig is delivered in mid-2014," the research house said in a note today.
Assuming rig utilisation at 80 per cent and daily charter rate at US$160,000, the topline contribution from the rig would be RM140 million while contribution from the pipelay barges would only be RM67 million, it said.
"Thus assuming that both the rig and pipelay vessel have similar margins, earnings could increase several fold.
"We are positive on the recent proposals as the company is sensible in managing gearing at the same time ensuring that earnings will be enhanced," Hong Leong said.
The research house has maintained a "buy" call on Perisai Petroleum with unchanged target price of RM1.55. -- BERNAMA
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