KUALA LUMPUR (April 13): Bumi Armada Bhd shares rose on Friday on reports that it had secured a pipeline contract in the Caspian Sea.
At 10.17am, Bumi Armada gained four sen to RM4.49 with 241,000 shares done.
A Kyiv Post article said Bumi Armada together with Lukoil-Niznyevolzhskneft LLC, a subsidiary of Lukoil has signed a contract to lay both underwater oil and gas pipelines for the Vladimir Filanovskoye deposits in the northern Caspian Sea.
Meanwhile, Maybank Investment Bank Bhd maintained its Buy rating on Bumi Armada Bhd at RM4.45 with a target price of RM4.88.
“While management has yet to confirm this (reported contract), we anticipate a marginal 1% enhancement to 2014 earnings,” said Maybank IB Research on Friday.
“Overall, we are marginally positive on this newsflow and it ties in with our expectation of the prospect of what the Caspian region can offer. Our unchanged RM4.88 TP is based on sum-of-parts (SOP) valuations,” it said.
The research house, citing the news artice, said the length would be around 40km for each pipeline.
“The completion of the first stage pipeline CONSTRUCTION [] is planned for end-2014 and the second stage the following summer. The Filanovskoye deposit project involves the laying of more than 330km of underwater and 350km of onshore pipelines,” it said.
At 10.17am, Bumi Armada gained four sen to RM4.49 with 241,000 shares done.
A Kyiv Post article said Bumi Armada together with Lukoil-Niznyevolzhskneft LLC, a subsidiary of Lukoil has signed a contract to lay both underwater oil and gas pipelines for the Vladimir Filanovskoye deposits in the northern Caspian Sea.
Meanwhile, Maybank Investment Bank Bhd maintained its Buy rating on Bumi Armada Bhd at RM4.45 with a target price of RM4.88.
“While management has yet to confirm this (reported contract), we anticipate a marginal 1% enhancement to 2014 earnings,” said Maybank IB Research on Friday.
“Overall, we are marginally positive on this newsflow and it ties in with our expectation of the prospect of what the Caspian region can offer. Our unchanged RM4.88 TP is based on sum-of-parts (SOP) valuations,” it said.
The research house, citing the news artice, said the length would be around 40km for each pipeline.
“The completion of the first stage pipeline CONSTRUCTION [] is planned for end-2014 and the second stage the following summer. The Filanovskoye deposit project involves the laying of more than 330km of underwater and 350km of onshore pipelines,” it said.
