KUALA LUMPUR: Maybank IB Research is positive on SapuraKencana Petroleum Bhd’s commitment to grow its regional footprint, given the strong brand endorsement and incremental earnings boost via the recent charter contract secured from PTTEP Australasia (Ashmore Cartier) Pty Ltd.
SapuraKencana has been awarded a RM50 million charter contract for its construction support vessel “Normand Clough” which will support PTTEP’s hook-up and commissioning at its Montara development project in Australia.
“We are encouraged by SapuraKencana’s regional growth reach and expect the group to be a major winner from Petronas’ domestic explorations and production capital expenditure programme which should ramp up in the second half of this year.
“We expect SapuraKencana to make a RM10 million net profit from this job. While this contract is a minor addition to its RM14 billion order book, we’re encouraged that this is its second job with PTTEP,” said Maybank IB in a research note.
It also expects the group to be a major winner on the domestic front as the pace of new contract awards picks up with an estimated RM5 billion worth of projects in the pipeline.
Meanwhile, Hong Leong Investment Bank sees the group as a proxy to global growth in offshore oil and gas production.
The new contract secured reaffirmed the investment bank’s expectations that SapuraKencana is in an excellent position to bag more contracts.