- We maintain our HOLD recommendation on SapuraKencana
Petroleum (SapuraKencana) with an unchanged fair value of RM2.60/share, pegged
to a FY14F PE of 18x– 20% above the oil & gas sector’s 15x currently.
- As indicated in our report on 24 September,
SapuraKencana’s wholly-owned TL Offshore Sdn Bhd has secured a US$25mil
(RM77mil) contract to procure, construct and install a production/processing
platform, pipelines and pipeline end manifold for the Manora Field development,
Thailand from Pearl Oil (Amata) Limited, an affiliate of Abu-Dhabi-based Mubadala
Petroleum.
- The contract comprises of procurement of equipment and bulk materials, fabrication, transportation,
installation and hook-up of a Wellhead Processing Platform and two 2km pipelines
in the Manora oil field, which lies in 44 metres of water at 80km from the
coast of Thailand. Pearl Oil (Amata) Limited is the operator of the Manora oil
field in the G1/48 concession in the Gulf of Thailand with partners Tap Energy
(Thailand) and Northern Gulf Petroleum. This is the first of three oilfields
being developed by Mubadala Petroleum in Thailand.
- Works for this contract will be carried out in a
consortium with Clough Ltd’s Thai-based subsidiary,
which will undertake the procurement and fabrication at its yard in Sattahip, Thailand
while TLO will undertake the transportation and installation. The contract work
is scheduled to commence this month with completion in early 2014. Given its
relatively small scale, this contract will not significantly raise
SapuraKencana’s current order book of RM14.5bil. Hence, we maintain FY13F-FY15F
net profit.
- For the rest of the year, we expect a higher magnitude of
newsflow for hook-up, construction and commissioning (HUCC) works vs. pure
fabrication jobs. The tenders which the group is bidding for include the
RM8bil-RM10bil Pan-Malaysian umbrella HUCC contract and RM600mil subsea
maintenance job, which is scheduled to be announced by the end of this year.
But the larger central processing platform and multiple wellhead platforms for
the North Malay gas basin Phase 2 development and Bokor, Dulang and Semarang
fields may only materialise next year.
- SapuraKencana’s valuations are currently fair at an FY14F
PE of 16x, which is at a 5% premium to the sector. We also do not discount the
possibility of Seadrill disposing of its remaining 6% in SapuraKencana to fund
its asset expansions in Brazil.
Source: AmeSecurities
No comments:
Post a Comment