The 1QFY12 results were within our expectations.
Although the company’s 1QFY12 revenue
was lower q-o-q, its quarterly net profit was quite consistent, contributed
by margin improvement from the onshore civil engineering services segment as
well as recovery of costs previously provided for the Kumang Project in the
prior financial years. However, we are unsure of the quantum of cost
recovered, and despite the 1QFY12 numbers making up 29% of our FY12 forecast, we
are keeping our earnings unchanged for now. Petra Energy is still a Buy.
Within estimates.
The 1QFY12 results were within consensus and our expectations, making up 27%
and 29% of the FY12 forecasts. Petra Energy's 1QFY12 net profit of RM7.2m was
sustainable, falling by only 11.5% q-o-q despite a 39.7% drop in revenue to RM131.3m.
The weaker revenue was due to the slowdown in brownfield services, lower brownfield
vessel utilisation and slower orders for
the design, fabrication, supply and installation services segment. Meanwhile,
net profit was still good, contributed by margin improvement from the onshore
civil engineering services segment as well as a recovery of costs previously
provided for the Kumang Project in the prior financial years. However, we are
unsure of the quantum recovered or whether it contributed significantly to the
quarter’s sustainable performance. Finally, on a YTD comparison, the results
were quite flat, as revenue fell 0.8%
while net profit rose 3.6%.
Still no news on sale
of Perdana’s 26.9% stake. In April 2012,
the Edge Weekly reported that the
2 parties interested in this stake are International Petroleum Investment Company
(IPIC), a sovereign wealth investment company from Abu Dhabi, and a Sarawak-based family, which also known to
its major shareholder Shorefield Resources. Perdana has reportedly appointed CIMB Investment Bank to undertake
the restricted tender for the divestment
of Perdana’s entire 26.9% stake in Petra Energy. We believe this sale may either
be in a lump sum or on a piecemeal basis, depending on the offer price from the prospective buyer. We
also believe that Perdana would prefer to dispose of this stake at a minimum of
1x book value, which is above RM1.50/share. Petra Energy’s net assets per share
stood at RM1.62 as at 31 Mar 2012.
Maintain Buy. We
are keeping our fair value for Petra Energy unchanged at RM1.50, based on the
existing PER of 13x FY12 EPS, for now. In the event the disposal of Perdana’s
26.9% Petra Energy stake is on a lump sum basis and the company is let go to an
established O&G outfit, this would represent an immediate re-rating for
Petra Energy. However, if carried out on a piecemeal basis and to parties who
are only pure investors, the sale would not bring any synergy to Petra Energy.
Source: OSK
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