What Happened 
Accompanied by the company's senior management team, SapuraKencana's president and group CEO Tan Sri Shahril Shamsuddin presented to a standing room only audience. There were no surprises from the presentation. Tan Sri Shahril took the opportunity to walk the audience through the company's operations and order book, as well as its prospects in existing and new markets. The company is eyeing more opportunities in the Americas, with a particular interest in Mexico. See overleaf for more highlights from the presentation.

What We Think 
SapuraKencana is clearly making Brazil its gateway to the Americas. The company has made its presence felt in Brazil and is set to replicate the proven model in a new market, with oil-producing Mexico being a possible target. We think that SapuraKencana is likely to work with Mexico's national oil company (NOC) Pemex, just like it does with Petrobras in Brazil. Building partnerships with NOCs, especially during challenging times like now, is an excellent strategy as the NOCs have their national agendas to fulfil even when oil prices are far from ideal. Currently, 70% of SapuraKencana's clients are NOCs, 18% are international oil companies and 12% represent others, including independents. The company's RM25.7bn order book is geographically diversified, with 49% coming from Asia Pacific, 47% from the Americas and 4% from West Africa.

What You Should Do 
Accumulate SapuraKencana shares. A robust order backlog and good leverage in the international market give the company an edge over its peers. The stock's expected return to the Securities Commission's (SC) shariah list next month is an added plus.

Source: CIMB Daybreak - 24 April 2015, Full PDF Report