6 companies compete for oil 6 billion contract Sinchew Sat, May 13, 2017
(Kuala Lumpur, 13) sources disclosed that Petronas' RM6 billion worth of maintenance, construction and conversion (MCM) contracts will be staged in a competitive competition.
(PENERGY, 5133, motherboard trade group), SABERGY energy (SENERGY, 5218), the main board of directors (DENANG, 5141) (CARIMIN, 5257, motherboard trade group), Di Lian (DELEUM, 5132, motherboard trade group) and logo off the coast (ICON, 5255, motherboard trade group) group of associates , And a private company has been included in the MCM's final list.
It is reported that the oil will be related to the contract is divided into 6, the contract period of 5 years, the largest part of which will fall in Sarawak state, worth 1.5 billion ringgit, but the details of the current lack.
Da Yang Enterprise is now responsible for the contract of state oil Sarawak business, so the probability of grab the contract was a high line.
"We only know that every company can get a contract of about RM1 billion, and it would be better for us to be in such a difficult time," said an executive who entered the list. http://www.klsescreener.com/v2/news/view/231043
Good points on petra for the share price to move up a) cash growing from $51 mil to $133 mil b) debt reduce from 238 mil to 150 mil c) order book growing d) RSC drilling increasing e) opec cut stabilise oil price
RSC production stage is growing. More profit coming in with oil price moving up with opec cut. Share price will continue to move up. This turnaround story is real one.
Petra Energy (PENB) returns to the black after posting 4 consecutive quarters of headline losses. The turnaround was driven by the higher remuneration fee recognised from Kapal, Banam and Meranti (KBM) RSC and higher other operating income in this quarter. In the latest edition of The Edge Weekly, it was reported that PENB is one of the shortlisted companies for the upcoming maintenance, construction and modification (MCM) contract which is expected to be awarded by early 3Q17. This will likely be a nearterm catalyst for the stock. We upgrade our target price to RM1.66 (from RM1.25) on a strong conviction that the company is on track to turn around its business in 2017 as work orders on the Pan Malaysia hook-up commissioning (HuC) and topside major maintenance (TMM) contract looks to improve. Maintain BUY.
Headline Profit Returned to Black Despite reporting a 38.5% yoy lower revenue, PENB delivered a turnaround in headline profit of RM5.3m. After adjusting for a RM0.6m unrealised forex gain, PENB booked a core net profit of RM4.7m (vs a loss of RM3m in 1Q16), in line with our full-year expectation. One of the main reasons behind the positive result was the higher remuneration fee recognised as a result of higher lifting prices and a spillover effect in terms of production offtake. Besides that, other operating income increased from RM0.8m in 1Q16 to RM8m in 1Q17 due to an insurance claim received for a repair work completed back in 2016.
Sequential Improvement Sequentially, revenue increased 14.1% while core net profit went into positive territory versus a loss of RM28m in 4Q16. KBM’s RSC profit increased 91.7% qoq to RM15.1m supported by higher lifting prices and a spillover effect from the previous quarter in terms of production offtake. As mentioned above, other operating income also resulted in a qoq improvement in core net profit.
On Track to Turning Around While we deem the results broadly in line with our expectation, we tweak our 2017-19E earnings slightly by -RM1.5m/-RM4m/+RM4m as we mainly fine-tune the capital spending assumptions in our RSC model. Due to the low bases, the changes in percentage terms are 5% and 7% lower respectively for 2017E and 2018E, but 7% higher for 2019E. Our RSC forecasts are premised on the assumption of a crude price of US$55/bbl in 2017E and USD60/bbl from 2018E onwards.
Small Cap Top Pick; Reiterate BUY With Higher TP We reiterate our BUY call and revise our SOTP-derived 12-month TP to RM1.66 (from RM1.25) as we raise our EV/EBITDA valuation multiple on the O&G services segment to 9x (from 5x), which is in line with its 5-year forward mean. We believe a re-rating of PENB is justified as its valuation will revert closer to mean as its services business turns around. We also believe that operating conditions are returning to normal, thereby justifying a mean valuation.
Risks to Our Call Decline in oil prices leading to lower RSC contribution, and delay in existing HuC work orders.
Roni, 58, is Petra Energy Bhd chief operating officer (COO) and Petra Resources Sdn Bhd CEO. He had served in Sarawak Shell Bhd, Brunei Shell Petroleum Co and Ranhill Bhd as its executive vice-president (petroleum and chemical). In terms of international exposure, Roni had been employed by Carigali-Triton Operating Co in major development projects for oilfields in Japan and South Korea. He was said to be instrumental in the development of marginal oilfields in Murphy Sarawak Oil Co Ltd.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
curious2
1,812 posts
Posted by curious2 > 2017-02-07 11:25 | Report Abuse
3 sen dividend fake?