Hot StockAlam Maritim rises 3% on vessel-leasing contracts

Hot StockAlam Maritim rises 3% on vessel-leasing contracts
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Tuesday, 09 April 2013 10:22


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KUALA LUMPUR (April 9): ALAM MARITIM RESOURCES BHD [] rose as much as 3% after the oil and gas (O&G) support services firm said it had secured some RM85 million worth of offshore vessel-leasing contracts.

At 10.05am, Alam Maritim was traded at 98 sen with some 5.3 million shares done after advancing as much as three sen to 99 sen earlier. The stock was the sixth most-active entity across the bourse.

In a statement to the exchange, Alam said it had secured a RM61.32 million accommodation vessel contract from Petronas Carigali Sdn Bhd.

Alam Maritim has also clinched two other deals with two O&G services firms. The platform supply vessel and work barge contracts are worth RM12.96 million and RM10.92 million respectively.

RHB Research Institute Sdn Bhd analyst Danny Chan said the research firm has factored in the latest contracts into its earnings forecast for Alam Maritim, hence, no change to the earnings forecast for the latter.

In a note today, Chan said since Alam Maritim is likely to achieve RHB's projected earnings growth of 28.3% in financial year ending December 31, 2013 for the former, the research firm is maintaining its "buy" call and fair value of RM1.25 for the company.

"While this is positive news, we are leaving our earnings estimate unchanged as we had previously incorporated the latest contracts into our earnings forecast,” Chan said.