PETALING JAYA: Things are looking up for Keyfield International Bhd
as it recently secured two new vessel charters - for an anchor handling tug supply vessel (AHTS) and a dynamic positioning two accommodation work boat (DP2 AWB) - worth a combined RM59.6mil.
The first contract was awarded to its wholly-owned unit, Keyfield Offshore Sdn Bhd (KOSB) by an offshore marine service provider in the United Arab Emirates (UAE).
The second contract was also awarded to KOSB by a commercial diving and remote-operated vehicle service provider in Malaysia.
Kenanga Research said the daily charter rate will most likely be at least RM150,000 for the AWB and RM40,000 for the AHTS.
The AHTS charter will commence in April 2025 for a firm 720-day period with an option to extend for 180 days, serving in the UAE while the DP2 AWB charter will begin in February 2025, running for 150 days with a 120-day extension option, and will be deployed in Malaysia.
The research house said the oil and gas offshore support vessel provider will see its daily charter rates trend upwards in the local offshore service vessels (OSV) market, particularly as supply remains tight while client demand continues to increase.
It noted the win for the group aligned with its expectations, as it has factored in charters for vessel types within Keyfield’s fleet projections.
In addition to the new vessels, Kenanga Research said Keyfield had also taken delivery of a 152-pax accommodation work barge, Keyfield Itqan, in July last year, which is being prepared for deployment.
“A second hand AHTS vessel, Keyfield Aulia was also added to the company’s fleet upon delivery on August 13, 2024.These vessels are expected to start contributing from the fourth quarter of financial year 2024 onwards, further driving earnings growth,” the research house noted.
With that, Kenanga Research said it likes Keyfield for its exposure in the OSV industry, as well as its relatively young fleet age of eight years and DP2-rated vessels which are preferred by clients.
“Furthermore, its inclusion as a panel contractor for AHTS for Petroliam Nasional Bhd could open more doors for more third party AHTS charters,” it said.
It added it will maintain an outperform call and an earnings forecast with a target price of RM3.18.
Kenanga Research said risks to be expected include significant decline in Brent crude prices, unexpected vessel downtime due to unplanned maintenance, and decline in oil producers’ capex planned.
At the time of writing, Keyfield’s share price stood at RM2.32, giving it a market capitalisation of RM1.86bil.
