Meanwhile, Sapura Offshore Sdn Bhd (SOSB) has secured a subcontract from Malaysia Marine and Heavy Engineering Sdn Bhd to transport and instal jackets, piles, bridges and appurtenances at the Bokor Central Processing Platform project. SOSB has also won a contract in India.
KUALA LUMPUR: AmInvestment Research is maintaining its buy call on Sapura Energy
with unchanged forecasts and fair value(FV) of 55 sen a share while it is positive on the company’s improving order book prospects.
It said on Thursday the FV of 55 sen was based on a 25% discount to its estimated diluted book value of 72 sen a share, assuming completion of the proposed rights issue of up to RM4bil.
“Sapura Energy’s improving order book prospects are accentuated further with the new award of contracts worth RM1.75bil,” it said.
On Wednesday, the integrated oil and gas services and solutions provider announced it secured new contracts worth RM1.75bil for jobs based in Malaysia and Mexico, lifting its order book to RM18bil.
AmInvest Research said based on the awards to date for FY19F, it estimates that these contracts substantively raise Sapura Energy's fresh orders by 33% to RM7.1bil.
“While this represents 18% above our FY19F new order book assumption of RM6bil, we maintain our forecasts for now as the underwater services contract will be spread out over five years on an uncertain called-out regime,” it said.
The research house said Sapura Energy's improved balance sheet from its rights and sale of a 50% equity stake in its upstream business to OMV frees up working capital to support the rising momentum of EPCIC jobs.
These are underpinned by the massive orders already secured with additional intake expected from tenders valued at US$7.4bil (RM31bil) and potential prospects worth US$10.2bil (RM42bil).
It said the stock currently trades at a low ex price-to-book value of 0.6 times currently vs. 0.8 times for Bumi Armada.
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