PETALING JAYA: Oil and gas (O&G) services provider T7 Global Bhd
’s earnings prospects have increased considerably with the latest maintenance, construction and modification (MCM) project awarded by Hibiscus Petroleum Bhd.
This brought the total value of MCM-related contracts to RM2bil and the company’s overall order book to a record high of RM4.7bil.
Philip Capital Research estimated that the combined MCM projects would contribute RM400mil to RM450mil revenue in the financial year ending Dec 31, 2025 (FY25) accounting for half of its revenue forecast.
The research house, which has maintained a “buy” call on T7 Global’s stock with a target price of 66 sen per share, said the company has been aggressively expanding its workforce to allow for the simultaneous execution of multiple MCM jobs.
On the current O&G project development, both the mobile offshore production units are operate at full capacity.
The Enya jack-up rig has commenced work at Labuan on nine wells, with operations on the wells expected to be completed by end-2025.
“Following this, the jack-up rig will be redeployed to Peninsular Malaysia and Sarawak for the remaining 44 wells, keeping it busy for two to three years,” the research house said.
