malaysian no effect.bcos the foregin investors not many holding the shares and they will transfer hot money to malaysia in this few days...and will make the malaysia share shooting up sharply. malaysia is their secure parking money
Westports Holdings, UMW Oil and Gas as well as Malaysia Marine and Heavy Engineering Holdings will be included into FTSE Bursa Malaysia Hijrah Shariah Index while SapuraKencana Petroleum, Bumi Armada and SP Setia will be excluded.
UMWOG's price at rm3.87 is undervalued currently. I also agree with some investors above which some said the share price should exceed more than rm4.50 or even rm5.00.
Today CIMB juz gave TP at 4.63 ( b4 is rm4.57 ) More than more other research houses r expected will give TP for UMWOG B4 end of December 2013.
Currently the campany have Naga 1,Naga 2, Naga 3 & Naga 4. Its has stable and solid order book/contracts now. Also will secure others contracts fr others counties.
The contract extensions awarded by Petronas Carigali for Naga 1, Naga 3 and Naga 4, and the commencement of Naga 2's contract with PetroVietnam in May 2013.
Naga 1, Naga 3 and Naga 4 are contracted to Petronas Carigali for works in Terengganu waters, while Naga 2 is servicing a Hess contract in offshore Vietnam for the end client, Hoang Long Joint Operating Company.
UMW-OG has submitted several bids to secure a contract for the new jack-up. In Malaysia, the company is banking on Petronas's import substitution model as the domestic jack-up segment is currently dominated by foreign players.
There are 508 jack-ups around the world, of which 402 are contracted. UMW-OG is leasing out its jack-ups at around US$150,000, 23% higher than the global average given the strong demand for jack-ups in Malaysia and other Southeast Asian markets.
25-year relationship with Petronas.Currently, UMW-OG has six contracts with Petronas. Of the six contracts, three are for Naga 1, Naga 3 and Naga 4, which make up 75% of UMW-OG's existing rig fleet.
We believe the company is well-positioned to secure new contracts under Petronas's capex programme, more so with the import substitution model in place.
In FY10-12, Malaysia was the biggest revenue earner for UMW-OG with an average contribution of 68%. In Malaysia, Petronas is typically the end client of most oil & gas jobs.
UMW-OG's list of clients also includes Chevron, Hess, Maersk, Murphy, Samsung, Shell, PTTEP and PetroVietnam. UMW-OG's licenses with Petronas are held by five units. The company also holds international licenses.
UMW-OG currently has an order book of RM1.4bn, up 122% from RM632m as at Dec 2012.
The backlog will last up to FY18 (Figure 48) and could stretch further when the company expands. The drilling services business provides an annuity-like revenue stream, which helps to smoothen out the oilfield services business' mostly project-based income.
The backlog is calculated by multiplying the contracted operating day rate by the number of days in the remaining contract period, assuming full utilisation throughout the relevant period.
Lower-than-statutory effective tax rate. We forecast an effective tax rate of 15% in FY13-15, thanks to offshore leasing activities. Selected assets, including the rigs, are subject to a fixed maximum tax rate of RM20,000/year under the Labuan Offshore Business Activity Act 1990, but the operating companies are still subject to the statutory rate.
UMW-OG is an attractive growth story, offering a 3-year EPS CAGR of 80%, thanks to the contributions from the new assets as the company takes advantage of the shortage of Malaysian-flagged jack-ups as well as high demand for the asset class in Southeast Asia. Earnings visibility is good given a solid order book that will last up to FY18.
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....
lengjoe
301 posts
Posted by lengjoe > 2013-12-11 16:37 | Report Abuse
ya fishing ... ^^