KUALA LUMPUR: Public Investment Bank Research is retaining its Neutral call on Perdana Petroleum and an unchanged target price of RM1.21.
The oil and gas company’s subsidiary Perdana Nautika Sdn Bhd (PNSB) secured a RM67mil contract from Petronas Carigali Sdn Bhd to supply a floating accommodation vessel for three years, with an optional extension of two years, starting Sept 17, 2016.
“This award reaffirms the group’s plans to attain a better fleet utilisation rate for 2HFY16 which will improve its current rate of 53% as at 2QFY16.
“Our estimates have accounted for sufficient contract replenishments albeit considering a lower utilisation rate assumption coupled with a less aggressive expansion plan going forward. Perdana remains suspended in the interim while awaiting the final takeover structure,” it said.
PublicInvest Research said the award did not come as a surprise as Dayang, Perdana’s new management has been aggressively bidding for jobs to continue boosting the group’s activities,” it said. It also reaffirmed Dayang’s ability to secure new work for the group.
The research house said the group’s average utiliasation for FY16 is expected at 68%, buoyed by current and potential contracts of both long and short-term durations.
“We understand there are plans to deploy three to five vessels to Brunei and Indonesia, while leveraging on its umbrella contracts and closed competitive bidding process to Petronas licence holders.
“We understand that the group is also exploring possibilities of venturing into regional markets in the ensuing year.
“Management plans to leverage on Perdana’s average six-years fleet for Dayang’s activities in the areas of hook-up & commissioning and topside structural maintenance mainly in the brownfield segment which have been less adversely affected by the dampened oil price landscape. Of 17 vessels, seven vessels are currently chartered to Dayang for its operations,” said PublicInvest Research.
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