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NewsAffin Research maintains "Add" on Perdana Petroleum, higher TP
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Affin Research maintains "Add" on Perdana Petroleum, higher TP
by Cals Mon 05 Aug 2013, 15:29
Published: Monday August 5, 2013 MYT 9:43:00 AM
Updated: Monday August 5, 2013 MYT 9:48:00 AM
Affin Research maintains "Add" on Perdana Petroleum, higher TP
KUALA LUMPUR: Affin Research is maintaining its “Add” call on Perdana Petroleum Bhd with a raised target price of RM2.13 from RM1.90 for its modern offshore support vessel (OSV) fleet.
“Also, we remain positive on the OSV sector, expecting strong earnings recovery in OSV operators to further re-rate share prices.
“Key risks to our positive view are further weakening of the Ringgit and unexpected slowdown in domestic oil and gas activities,” it said.
It added Perdana Petroleum has returned to profitability since its second quarter 2012 after enduring a four-year industry downturn.
“Within a short span of one year, Perdana has ordered five accommodation work barges from Nam Cheong at US$29.5mil (RM96.1mil),” it said.
Affin noted four of the five new accommodation work barges will be chartered to Dayang on a five-year chartering contract while the group has yet to secure a client for the fifth work barge.
“Moving forward, Perdana will gradually expand its OSV fleet, focusing on work boats and work barges,” it said.
“We believe that Perdana may order a further two to three new vessels annually through its financial year 2014 and 2015,” it said.
Updated: Monday August 5, 2013 MYT 9:48:00 AM
Affin Research maintains "Add" on Perdana Petroleum, higher TP
KUALA LUMPUR: Affin Research is maintaining its “Add” call on Perdana Petroleum Bhd with a raised target price of RM2.13 from RM1.90 for its modern offshore support vessel (OSV) fleet.
“Also, we remain positive on the OSV sector, expecting strong earnings recovery in OSV operators to further re-rate share prices.
“Key risks to our positive view are further weakening of the Ringgit and unexpected slowdown in domestic oil and gas activities,” it said.
It added Perdana Petroleum has returned to profitability since its second quarter 2012 after enduring a four-year industry downturn.
“Within a short span of one year, Perdana has ordered five accommodation work barges from Nam Cheong at US$29.5mil (RM96.1mil),” it said.
Affin noted four of the five new accommodation work barges will be chartered to Dayang on a five-year chartering contract while the group has yet to secure a client for the fifth work barge.
“Moving forward, Perdana will gradually expand its OSV fleet, focusing on work boats and work barges,” it said.
“We believe that Perdana may order a further two to three new vessels annually through its financial year 2014 and 2015,” it said.
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