OSK Research Sdn Bhd has maintained a 'neutral' call on investment holding company, Alam Maritim Resources Bhd, at an unchanged price of 85 sen.
In a research note today, OSK said in comparison with other listed vessel operators like Perdana Petroleum, Petra Energy and Tanjung Offshore, Alam Maritim has outperformed its peers in terms of new contracts and quarterly earnings performance.
"The results of its peers were mostly flat or were in red ink quarter after quarter as a result of poor vessels utilisation and dearth of new contracts.
"Although we think Alam Maritim is out-performing its peers, this development has been partly factored into its share price valuation," it said.
OSK said it was positive on the company but maintained its forecast for financial year 2011-12 results.
It said Alam Maritim was expected to clinch more long-term vessel charters in the future.
"About 50 per cent of its vessels are now on long-term charters averaging about a year while the balance 50 per cent are on spot charter.
"Hence, although its utilisation rate fluctuates monthly, we understand that on average it is still hovering at 60 to 80 per cent," it said.
OSK said judging from the industry’s current operating environment, the rate was reasonable in view of the fact that Petroliam Nasional Bhd and its production-sharing contractors were still handing out minimal new vessel contracts. -- BERNAMA
In a research note today, OSK said in comparison with other listed vessel operators like Perdana Petroleum, Petra Energy and Tanjung Offshore, Alam Maritim has outperformed its peers in terms of new contracts and quarterly earnings performance.
"The results of its peers were mostly flat or were in red ink quarter after quarter as a result of poor vessels utilisation and dearth of new contracts.
"Although we think Alam Maritim is out-performing its peers, this development has been partly factored into its share price valuation," it said.
OSK said it was positive on the company but maintained its forecast for financial year 2011-12 results.
It said Alam Maritim was expected to clinch more long-term vessel charters in the future.
"About 50 per cent of its vessels are now on long-term charters averaging about a year while the balance 50 per cent are on spot charter.
"Hence, although its utilisation rate fluctuates monthly, we understand that on average it is still hovering at 60 to 80 per cent," it said.
OSK said judging from the industry’s current operating environment, the rate was reasonable in view of the fact that Petroliam Nasional Bhd and its production-sharing contractors were still handing out minimal new vessel contracts. -- BERNAMA
