Stock Name: SKPETRO
Company Name: SAPURAKENCANA PETROLEUM BHD
Affin Investment Bank raised its target price on SapuraKencana Petroleum Bhd to RM4.62 from RM4.13, citing a stronger earnings outlook after the firm bagged a US$2.7 billion offshore support vessel contract.
SapuraKencana and Norway's Seadrill were last week awarded an 8-year contract by Brazil's state-run oil firm Petrobas SA to build, charter and operate three pipe-laying vessels, with delivery scheduled for the second quarter of 2016.
"We are positive on the contract win. Assuming a net profit margin of 12 per cent, we expect the Petrobas contract to add RM65 million of net profit to SapuraKencana's future earnings," Affin said in a note on Monday.
Affin kept its 'buy' call on the stock, adding that SapuraKencana remains one of its top picks among the oil and gas companies under its coverage.
Shares in SapuraKencana fell 0.98 per cent to RM4.05 against the Malaysian benchmark stock index's 0.18 per cent fall in early Monday trade.-- Reuters
Company Name: SAPURAKENCANA PETROLEUM BHD
| Research House: AFFIN | Price Call: BUY | Target Price: 4.62 |
Affin Investment Bank raised its target price on SapuraKencana Petroleum Bhd to RM4.62 from RM4.13, citing a stronger earnings outlook after the firm bagged a US$2.7 billion offshore support vessel contract.
SapuraKencana and Norway's Seadrill were last week awarded an 8-year contract by Brazil's state-run oil firm Petrobas SA to build, charter and operate three pipe-laying vessels, with delivery scheduled for the second quarter of 2016.
"We are positive on the contract win. Assuming a net profit margin of 12 per cent, we expect the Petrobas contract to add RM65 million of net profit to SapuraKencana's future earnings," Affin said in a note on Monday.
Affin kept its 'buy' call on the stock, adding that SapuraKencana remains one of its top picks among the oil and gas companies under its coverage.
Shares in SapuraKencana fell 0.98 per cent to RM4.05 against the Malaysian benchmark stock index's 0.18 per cent fall in early Monday trade.-- Reuters
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