PETALING JAYA: Vantris Energy Bhd is showing signs of recovery, anchored by marginal profitability and stronger cost management, according to BIMB Research.
The research house highlighted the uptick was supported by the group’s order book rising slightly to RM6.7bil in its fourth quarter of financial year ended Jan 31, 2026 (4Q26) from RM6.3bil in the previous quarter, driven by a RM1.4bil transport and installation (T&I) contract win from Petroliam Nasional Bhd (PETRONAS).
The group’s joint venture order book also eased slightly to RM3.4bil from RM3.9bil in its previous quarter.
Vantris posted a net profit of RM167mil in 4Q26, which was driven by lower finance costs following debt restructuring and disciplined cost management. The research house said the Angola engineering and construction (E&C) project, which had weighed on Vantris’ 3Q26 results prior, had recorded smaller losses.It added that the project turnaround enabled the group’s E&C segment to swing to a gross profit of RM41mil from a 3Q26 gross loss of RM126mil.
“Both Vantris’ operations and maintenance as well as drilling segments also remained profitable,” BIMB Research said.
The research house also pointed out that Vantris is gradually growing its secured work while strategically reducing high-risk contracts.
The group’s tender book currently stands at RM25.9bil and is focused on Asia Pacific E&C work, followed by a strategic shift towards day rate transportation and installation (T&I) projects.
BIMB Research explained that Vantris’ T&I projects inherently lowered the group’s exposure to high-risk lump-sum engineering, procurement, construction, installation, and commissioning jobs.
Additionally, despite reporting a core loss of RM457mil for financial year 2026 (FY26), albeit 22% better than expectations, the research house indicated Vantris experienced minimal operational disruption from geopolitical tensions and has manageable debt exposure, noting that 70% of the latter’s borrowings remain ringgit denominated, which limits foreign exchange risks from a strengthening US dollar.
BIMB Research said Vantris’ management highlighted minimal near-term operational disruption from the US-Iran war, with fuel cost pass-through mechanisms largely intact.
One month into the conflict, Vantris’ management noted no clear indication of stronger demand for oil and gas projects, it cited.
“However, we believe elevated oil prices above US$100 per barrel would provide a supportive backdrop for offshore project activity, reinforcing the group’s prospects of delivering two consecutive profitable quarters and exiting Practice Note 17 status,” added the research house.
With a strengthened balance sheet, improved earnings outlook, and ongoing offshore project activity supported by elevated oil prices, BIMB Research maintained a “buy” rating with a target price of 72 sen, noting a 92% upside.
“Our buy thesis is supported by prudent cost management, a significantly strengthened balance sheet and lower financing costs post-restructuring,” it said.
BIMB Research has raised its FY27 to FY29 earnings to RM268mil, RM322mil and RM323mil respectively.
