Stock Name: ALAM
Company Name: ALAM MARITIM RESOURCES BHD
An extension contract worth RM70.8 million awarded to Alam Maritim Resources Bhd yesterday failed to give impetus to the
company's share price today.
Alam Maritim share prices ended unchanged at 82 sen at lunch-break after the counter moved between 81.5 sen and 83.5 sen throughout the morning session with 1.651 million units traded.
The contract, awarded by Petronas Carigali Sdn Bhd Peninsular Malaysia Operations, through its wholly-owned subsidiary, Alam Maritim (M) Sdn Bhd for the purpose of providing two work boats to support the latter's painting activities.
Maybank Investment Bank, in a note today, said the successful extension of workboat contracts with was an increased estimated daily charter rate (DCR) of RM98,000, was three per cent higher than a recent contract announced in Oct 2012.
"This also was 15 per cent higher than the original contract in May 2012 and 31 per cent higher than for a similar work boat contract secured in Sept 2011, it said.
It added: "We understand that two of Alam's workboats, Setia Ulung and Setia Sakti, are chartered out for this contract and hence we make no changes to our forecast as we have already factored in the extension time frame.
"We reiterate our "buy" call on Alam with a target price of RM1.05," it added. The investment bank viewed this development positively.
"While this was just the exercise of a one-year extension option, the 15 per cent higher DCR Alam obtained for the contract extension emphasised the increasing strength in the offshore support vessel market, especially for workboats and barges," it added. -- Bernama
Company Name: ALAM MARITIM RESOURCES BHD
| Research House: MAYBANK | Price Call: BUY | Target Price: 1.05 |
An extension contract worth RM70.8 million awarded to Alam Maritim Resources Bhd yesterday failed to give impetus to the
company's share price today.
Alam Maritim share prices ended unchanged at 82 sen at lunch-break after the counter moved between 81.5 sen and 83.5 sen throughout the morning session with 1.651 million units traded.
The contract, awarded by Petronas Carigali Sdn Bhd Peninsular Malaysia Operations, through its wholly-owned subsidiary, Alam Maritim (M) Sdn Bhd for the purpose of providing two work boats to support the latter's painting activities.
Maybank Investment Bank, in a note today, said the successful extension of workboat contracts with was an increased estimated daily charter rate (DCR) of RM98,000, was three per cent higher than a recent contract announced in Oct 2012.
"This also was 15 per cent higher than the original contract in May 2012 and 31 per cent higher than for a similar work boat contract secured in Sept 2011, it said.
It added: "We understand that two of Alam's workboats, Setia Ulung and Setia Sakti, are chartered out for this contract and hence we make no changes to our forecast as we have already factored in the extension time frame.
"We reiterate our "buy" call on Alam with a target price of RM1.05," it added. The investment bank viewed this development positively.
"While this was just the exercise of a one-year extension option, the 15 per cent higher DCR Alam obtained for the contract extension emphasised the increasing strength in the offshore support vessel market, especially for workboats and barges," it added. -- Bernama
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