Kejuruteraan Samudra Timur’s share price near eight-year high

by **Cals** Wed 22 Jul 2015, 17:17

Kejuruteraan Samudra Timur’s share price near eight-year high

KUALA LUMPUR: Kejuruteraan Samudra Timur Bhd (KSTB) ([You must be registered and logged in to see this image.] Financial Dashboard) continued its climb yesterday, surging as much as 13% following news that the oil and gas service provider had been lifted out of Practice Note 17 (PN17) status.
The stock went up seven sen to close at 61 sen — the highest level since November 2007, with 4.99 million shares changing hands. It has gained 27% from 48 sen in the past two trading days.
As at March 31, KSTB had a net cash pile of RM98 million, or 53.4 sen per share.
Bursa Malaysia has approved KSTB’s (fundamental: 1.55; valuation: 1.8) upliftment and considered it a cash company. It is now required to continue to comply with the provisions pursuant to Paragraph 8.03 and PN16 of the Main Market listing requirements.
It fell into PN17 status upon its disposal of its entire interest in Samudra Oil Services Sdn Bhd, which it had been conducting its core tubular handling equipment business, to Destini Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) for RM80 million, leaving it without a core business.
For the nine months ended March 31, 2015 (9MFY15), KSTB posted a net profit of RM8.71 million from RM701,000 a year ago, while revenue improved to RM8.03 million from RM7.34 million for 9MFY14.

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This article first appeared in The Edge Financial Daily, on July 22, 2015.