Highlight SapuraKencana bags RM300m worth of contracts

by **Cals** Tue 08 Dec 2015, 01:31

Highlight

[size=28]SapuraKencana bags RM300m worth of contracts

By Gho Chee Yuan / theedgemarkets.com | December 7, 2015 : 2:32 PM MYT

KUALA LUMPUR (Dec 7): SapuraKencana Petroleum Bhd ([You must be registered and logged in to see this image.] Valuation: 0.80, Fundamental: 0.65) clinched two new projects and secured an extension for an existing one. These contracts have a collective value of US$72 million (RM300 million).

In a filing with Bursa Malaysia today, SapuraKencana said the new contracts involved upstream support services each in Malaysia and India.

In Malaysia, SapuraKencana said it clinched an engineering, procurement, construction and commissioning contract for simultaneous production and drilling from Roc Oil (Sarawak) Sdn Bhd.

"The contract is for a period of approximately four months and works are expected to commence in the fourth quarter of 2015 with expected completion by the first quarter of 2016," SapuraKencana said.

In India, SapuraKencana said it secured a subcontract for the Vasai East project from main contractor L&T Hydrocarbon Engineering.

SapuraKencana said it had been tasked to install structures and pipelines and undertake subsea work at the Arabian Sea. The project is scheduled for completion in March 2016.

SapuraKencana also announced a five-month extension to an existing project in Africa's Ivory Coast.

According to SapuraKencana, drilling services for Foxtrot International LDC is now expected to be completed by August 2016. The drilling rig is known as SKD Alliance.

"Additionally, Foxtrot still retains the option to extend the contract by three additional wells, which if exercised, will keep the SKD Alliance on contract until the final quarter of 2016," SapuraKencana said.

At 12:30pm, SapuraKencana shares rose one sen or 0.5% to RM2.15 for a market capitalisation of RM12.88 billion. The stock saw 397,400 shares done.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
[/size]