PETALING JAYA: T7 Global Bhd
’s latest contract from EnQuest Petroleum Production Malaysia Ltd could contribute around RM4mil in profit after tax, representing about 7% of the group’s 2026 earnings forecast.
The contract was secured by T7 Global’s wholly-owned subsidiary, Tanjung Offshore Services Sdn Bhd and entails the provision of an integrated hydraulic workover unit for the 2026 and 2027 EnQuest well campaign.
While the contract value was not disclosed, Phillip Capital Research estimates around 24 wells to be executed under the Package B3 campaign.
“Assuming an average revenue of RM6mil per well, we estimate the total contract value at about RM144mil over the two-year contract period.
“Based on our assumptions that 10 wells will be completed in 2026 and applying a 6% net profit margin, the contract could contribute circa RM4mil in profit after tax, representing about 7% of our 2026 earnings forecast,” Phillip Capital Research said in a note to clients.
The research house said the latest job award reinforces T7 Global’s execution track record and strengthens its relationship with EnQuest.
However, Phillip Capital Research has kept its earnings forecasts unchanged as this contract win fell within its existing revenue assumptions.
“We maintain our hold rating and unchanged sum-of-the-parts-derived target price of 28 sen, which implies a five times 2026 estimated price-to-earnings ratio.
“We continue to view T7 Global as a beneficiary of sustained domestic and offshore activities, underpinned by its healthy circa RM4bil order book, comprising 90% from the energy segment and 10% from the industrial solutions segment, which provides long-term earnings visibility.”
Shares of T7 Global were trading at 26 sen, down 11.7% year-to-date.
