Wednesday, 7 March 2012

Maybank IB Research maintains buy on SapuraCrest

KUALA LUMPUR (March 7): Maybank Investment Bank Research is maintaining a Buy on SAPURACREST PETROLEUM BHD [] at RM5.62 as it has upside potential.

It said on Wednesday the Petronas Carigali Sdn Bhd (PCSB) contract charter for the T-9 rig is earnings- neutral to SapCrest, for the daily charter rate (DCR) is relatively similar its previous contract with EMEPMI albeit for a shorter duration.

“With two more rig contracts set to expire by 1H12, we expect minimal difficulties in seeking contract extensions at decent rates owing to the greater number of drilling programmes planned for the next two years. Our RM5.62 TP excludes contributions from its 49% stake in FPSO Berantai. Incorporating this would lift our TP to RM5.94,” said Maybank Research.

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