Sapura Energy shares rise on RM1.47bil contracts win

KUALA LUMPUR: Shares in Sapura Energy Bhd were boosted in early trading on Thursday after it announced it was awarded a combined RM1.47bil worth of jobs.

Sapura Energy rose 2.14%, or three sen to RM1.43 with over three million shares traded. It is currently one of the top gainers of the day.

The company has secured five contracts worth a combined RM1.47bil. They include work in relation to the Pan Malaysia Transportation and Installation of Offshore Facilities for Petronas Carigali Sdn Bhd and Sarawak Shell Bhd, via Sapura Offshore Sdn Bhd.

Sapura Energy said the work comprised transportation and installation of offshore facilities including platform, structures and pipelines and its associated works (and) would be executed throughout 2018.

MIDF Research has upgraded Sapura Energy to a “buy” call with an unchanged target price of RM1.69.

“With the recent selldown in share price due to the exit of one of its substantial shareholders and the overall decline in the broader FBM KLCI, we are of the opinion that SEB offers generous potential upside for investors,” it said.

The research house said the latest contract wins brings the total value of contract wins in 2017 to RM4.12bil.

“The current outstanding orderbook is at approximately RM15bil, where RM3.1bil will be recognised in FY18, RM3.4bil in FY19 and the remaining RM8.5bil in FY20 onwards,” MIDF said.

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