KUALA LUMPUR: AmResearch has maintained its Hold call on SapuraKencana with an unchanged fair value of RM2.45 a share based on FY16F PE of 12 times.
The StarBiz reported today that SapuraKencana Petroleum is poised to land twojobs, in India and Mexico, potentially totalling about USD1.5bil (RM5.35bil).
In a note on Thursday, the research house said for the group's India job, it is understood that SapuraKencana, through its wholly-owned subsidiary TL Offshore Sdn Bhd, has put in the lowest bid – between US$273mil and US$291mil – among four contenders interested in a portion of the ONGC’s Mumbai High South (MHS) phase three redevelopment project to the tune of US$200mil-US$300mil.
"Likely frontrunner and local-based Larsen & Toubro Ltd has put in a higher bid of US$390mil, while Abu Dhabi-based National Petroleum & Construction Co and US-based McDermott have put in bids of US$471mil and US$406mil, respectively," it said.
It added that SapuraKencana may also face stiff competition if Singapore’s Swiber Holdings Ltd is successful in resubmitting its bid after it had failed to do so earlier due to technical issues.
"If successful, this would be the first major contract win for the year. We have currently imputed RM6bil-RM8bil in new orderbook assumptions for FY16F-FY18F.
"The group’s orderbook stood at RM25.7bil as at March 2015 and remains the largest ithin the O&G sector," it noted.
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