PETALING JAYA: Keyfield International Bhd
, which provides offshore accommodation services to the oil and gas (O&G) industry, is expected to see stable vessel utilisation rates driven by expansion into the Middle East as well as additions to the company’s fleet, says Phillip Capital.
The brokerage, which initiated coverage on Keyfield with a “buy” call on the stock and a target price of RM1.70, said the valuation considers the nine times price-to-earnings multiples based on financial year ending Dec 31, 2027 (FY27) earnings-per-share and in line with small-mid cap local O&G peers.
It forecasts three-year net profit on compound annual growth rate (CAGR) of 17% from FY25 to FY28 after delivering three-year CAGR net profit of 32% from FY22 to FY25.
The growth would be driven by expansion into the Middle East and fleet additions, higher daily charter rates of RM108,000 compared with FY25’s RM105,000 reflecting the newer and higher specification vessels, and improved fleet driving operating leverage.
It expects robust offshore activities to drive demand for accommodation workboats or AWBs, mainly driven by Petroleum Sarawak Bhd’s capital expenditure plans involving RM40bil over the next five years.
This places the company, which has strong exposure to offshore operations, in a favourable position to benefit.
