CIMB Research maintains high conviction Overweight on oil & gas sector

Business & Markets 2013
Written by theedgemalaysia.com
Wednesday, 29 May 2013 08:14
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KUALA LUMPUR (May 29): CIMB Research has maintained its high
conviction Overweight rating on the oil & gas sector and said that with
four contracts already awarded, Petronas and its partners were set to
award another RM5.5 billion worth of hook-up and commissioning (HUC)
and topside major maintenance (TMM) jobs.
In a note May 28, CIMB’s Norziana Md Inon said marine support
providers were in a sweet spot as these jobs require the supply of
vessels.
“As we continue to have positive expectations on the oil & gas sector,
we maintain our high-conviction Overweight call.
“Our top picks are Petronas Dagangan for big caps and Perisai for
small caps,” she said.
However, for pure exposure to marine support, we recommend Perdana
and Alam, whose in-house young fleets are poised to benefit from the
uptrend in HUC and TMM demand, said Norziana.