PETALING JAYA: Analysts view oil and gas service provider Vantris Energy Bhd’s recent contracts positively and say these awards reinforce the company’s strategy of repositioning its engineering and construction (E&C) business towards transportation and installation (T&I) work where it can leverage its strengths.
BIMB Research said the strengths included its specialised offshore vessels.
The awards will also help it reduce the engineering and procurement risks associated with full engineering, procurement, construction, installation, and commissioning or EPCIC contracts, it added.
Vantris recently said its unit had obtained two offshore transportation and installation work orders with a combined value of about RM1.8bil.
The first work order was awarded by PETRONAS Carigali Sdn Bhd for the T&I of offshore facilities for the SK316 NC3/NC8 Trunkline 7 FAC project under an existing contract, while the second work order was from PTTEP HK Offshore Ltd and PTTEP Sarawak Oil Ltd under an existing contract for offshore T&I services for PTTEP development projects.
Both contracts will commence in the third quarter of 2026 and are expected to run until the fourth quarter of next year.
“Notably, these represent its second major contract wins in the financial year ending Jan 31, 2027 (FY27), bringing year-to-date order book replenishment to RM2.6bil, already exceeding the RM1.4bil secured in FY26.
“This should lift its outstanding order book to approximately RM8.5bil and strengthen near-term earnings visibility.
“Accordingly, we raise our FY27 and FY28 earnings forecasts by 9% and 28% to RM283mil and RM355mil, respectively,” it said.
BIMB Research said it was optimistic on Vantris, supported by improving earnings visibility, continued order book replenishment and better earnings quality following the group’s strategic and financial restructuring.
BIMB Research noted that Vantris is tentatively scheduled to release its second quarter of financial year 2027 (2Q27) results today.
The research house is expecting another profitable quarter, with net profit of around RM70mil to RM80mil, albeit lower quarter-on-quarter from RM167mil in 1Q27, which benefited from approximately RM70mil of insurance claims and RM20mil of foreign exchange gains.
The absence of these sizeable one-offs should be partly cushioned by stronger contributions from the operations and maintenance segment, which typically sees higher activity in the second and third quarters, it said.
BIMB Research said it has raised its FY27 and FY28 earnings forecasts by 9% and 28%, respectively, to reflect contributions from the new jobs.
It said the company’s stock was trading near its dilution-adjusted pre-PN17 level of about 32 sen despite a significantly healthier financial position today, a valuation disconnect that it believes is “unjustified”.
BIMB Research has maintained a “buy” call on Vantris with an unchanged target price of 72 sen. At last look, the stock was trading at 34 sen.
