In a note on Tuesday, the research house said it made no changes to its FY14 earnings forecast but lowered its FY15/FY16 estimates by 28%/23% respectively, as it lowered its charter assumptions for the idle assets as well as PP102.
"We value Perisai at eight times FY15 P/E, the lower end of our oil and gas sector valuation multiples given the diminishing prospects of new contracts for its idle assets and forthcoming new rigs in the current weak crude oil price environment," it said.
It added that Perisai continues to be weighed down by its idle assets, with its two jack-up rigs yet to be delivered and potentially facing difficulties in securing charter contracts.
"Two of Perisai Petroleum Teknologi’s (Perisai) assets are still idle with no contract wins in sight. Management has guided that Perisai is tendering for jobs for its mobile offshore production unit (MOPU), Rubicone, as well as its derrick lay barge (DLB), Enterprise 3.
"However, we remain cautious on the prospect of obtaining new contracts as these two assets are old and of lower specifications. In a low crude oil price environment, we believe efficiency and cost-saving measures are key to obtaining contracts.
"Therefore, we believe that Perisai faces an uphill battle to win contracts for the two aging vessels. Note that as we did not factor in any job wins for the two vessels, an unexpected contract win could provide an earnings upside for Perisai," it noted.