CIMB Research maintains Outperform on Perisai Petroleum

KUALA LUMPUR: CIMB Research has maintained an Outperform on Perisai Petroleum, while remained as CIMB’s top pick among oil & gas small caps.
“As expected, Perisai did not declare any dividends. We continue to value the stock at a CY15 P/E of 15.6 times, which is still at a 30% discount to the P/E of oil & gas big caps,” it said in a note on Thursday.
It added contributions from Garuda’s mobile offshore production unit (MOPU), Rubicone, pushed 3Q core net profit up 13% on-year.
“This led to an 11% improvement in 9M core net profit, which scaled a new high. Rubicone contributed 41% to 9M group revenue and 46% to pretax,” it said.
CIMB noted Rubicone's contribution in 3Q was its last from the Bekok-C field following project completion on 30 Sep.
“Rubicone and the Enterprise 3 (E3) pipelay barge are now idle but management is optimistic of securing new jobs for these assets. Our forecasts factor in six months of downtime from Oct 2013 until Mar 2014 for Rubicone,” it said.
Meanwhile, CIMB said Perisai is using E3 as the main asset for a transport and installation package offered by Petronas. An outcome is expected by year-end.
Moving forward, CIMB said Perisai's first jack-up drilling rig, Perisai Pacific 101, is scheduled to be delivered in Jun 2014 while the second rig is expected to arrive in 2Q15.
“The company has yet to secure contracts for the rigs,” it said.