SapuraKencana climbs on firm crude oil, set to return to Shariah list

  • Oil & Gas
  • Thursday, 16 Apr 2015

KUALA LUMPUR: SapuraKencana Petroleum advanced to a high of RM2.71 on Thursday, underpinned by the firm crude oil prices and ahead of its return to the Securities Commission’s (SC) list of Shariah-compliant securities in the May review.

At 3.25pm, it was up six sen to RM2.66. There were 18.63 million shares done at prices ranging from RM2.65 to RM2.71.

The FBM KLCI was up 0.39 of a point to 1,840.52. Turnover was 1.94 billion shares valued at RM1.59bil. There were 473 gainers, 339 losers and 339 counters unchanged.

CIMB Research said SapuraKencana released its FY1/15 audited accounts on Wednesday as it moved a step closer towards regaining its Shariah-compliant status. It was removed from the list in the November 2014 review.

“A robust order backlog of RM25.7bil and good leverage in the international market give the company an edge over its peers. The stock’s expected return to the SC’s Shariah list is an added plus,” it said.

As at Jan 31, 2015, the borrowings totaled RM17bi while total assets were RM34.6bil. 

To recap, it had on Jan 15, signed an agreement with 11 local, regional and international banks for an Islamic facility valued at US$2.3bil (RM8.3bil) which was Malaysia’s largest Islamic facility. 

On Jan 30, it converted RM7bil of its existing multi-currency facility into a facility based on Shariah principles of Murabahah at an unchanged rate of 0.95%-2.5%, plus cost of funds/LIBOR. 

After the conversion, SapuraKencana’s total conventional borrowings over total assets were reduced to 29% from 49%, which met the SC’s Shariah requirement. The SC’s Shariah threshold is 33%.

Oil & Gas