Research houses hold mixed views on Perdana Petroleum

Research houses hold mixed views on Perdana Petroleum
Business & Markets 2013
Written by Bernama
Wednesday, 21 August 2013 11:30

KUALA LUMPUR (Aug 21): Kenanga Research has maintained its "outperform" call on Perdana Petroleum given the company's stable medium to long-term prospects on the back of its long-term contracts.

The research house said for Perdana Petroleum's existing vessels, at least 10 are chartered until 2018 to 2019 and another three from 2014 to 2015.

"Only four vessels are on spot charters which Perdana is confident on securing recurring contracts.

"Dayang Enterprise Bhd has mobilised two vessels in July, two vessels this month and two more by the first half of next year," said Kenanga Research in a note today.

The research firm said longer-term prospects would hinge on Perdana's future fleet expansion programme.

"We maintain our forecast as the results are in line," it said.

The research house also said it expects a stronger second half this year on the back of cost savings following completion of the disposal old vessels by end-June and mobilisation of vessels contracted on long-term charter to Dayang started between July and this month.

Kenanga Research maintained its target price at RM2.40.

In a separate note, RHB Research said it has raised its financial year 2014 earnings forecast on Perdana by 5.8 per cent.

The research firm has included the potential earnings from the work barge into the fourth quarter on financial year 2014.

The research house maintained its "neutral" call on Perdana and suggested that investors buy when the stocks are low as the company's prospects are still promising given the potential surge in earnings in the 2015 financial year.