THE BUZZ
SapuraKencana Petroleum (SKP) announced yesterday that its wholly-owned subsidiary, Kencana HL SB, has received a letter of award from Kebabangan Petroleum Operating Company SB for the provision of hook-up and commissioning services for Kebabangan Northern Hub Development Project.
OUR TAKE
More about the contract. The contract comprises provision of hook-up and commissioning services for offshore facilities for the Kebabangan oil field located offshore Sabah. The estimated value for the contract is approximately RM106m and is scheduled to commence in mid-2012 and be completed by mid-2014.
Positive news, but no change to our FY13-14 forecasts. This is because we had already factored in some orderbook replenishment for the merged entity.
Maintain BUY. Despite already having a strong orderbook, we think that there are still ample opportunities for SKP to beef up its orderbook further, especially from Petronas. SKP remains our top O&G pick besides Dialog and we remain bullish on the group as it is now a full-fledged engineering, procurement, construction, installation and commissioning (EPCIC) O&G provider. Our fair value for SKP is RM2.88, based on PER of 20x FY13 EPS.
Positive news, but no change to our FY13-14 forecasts. This is because we had already factored in some orderbook replenishment for the merged entity.
Maintain BUY. Despite already having a strong orderbook, we think that there are still ample opportunities for SKP to beef up its orderbook further, especially from Petronas. SKP remains our top O&G pick besides Dialog and we remain bullish on the group as it is now a full-fledged engineering, procurement, construction, installation and commissioning (EPCIC) O&G provider. Our fair value for SKP is RM2.88, based on PER of 20x FY13 EPS.
Source: OSK
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