KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
Retain OUTPERFORM with an unchanged target price (TP) of RM1.90
SapuraKencana Petroleum’s (SAKP) wholly-owned subsidiaries have been awarded a combined value of c.USD300m (c.RM1.3bn) worth of contracts. The awards are for the engineering and construction (E&C) and drilling divisions. The Group’s orderbook wins to-date stands at RM5.5bn for FY17F. We continue to maintain our estimates however due to these new contracts being part of the replenishment for FY18 onwards, coupled with the nature of the contracts in which revenue is recognised on a progress billing cycle or call-out basis for instance. Our Outperform view on SAKP is nonetheless reaffirmed with an unchanged TP of RM1.90 based on our blended SOP valuation.
- PETRONAS Carigali Sdn. Bhd (PCSB) award. For a duration of 2 years and to be performed on a call-out basis, the Group secured a contract for the provision of underwater services located at the offshore waters of Peninsular Malaysia. The job scope comprises of underwater services with vessels, air and saturation diving, remotely operated vehicle (ROV) and other related underwater services, including inspection, maintenance and repair to support PCSB’s underwater facilities.
- Another PCSB contract. Awarded to SapuraKencana GeoSciences Sdn. Bhd. for the provision of soil investigation services at both Peninsular Malaysia and Sarawak/Sabah operation areas, the contract is for a duration of 1 year with an optional extension for another 1 year.
- Hyundai Heavy Industries award is for the provision of offshore installation work of CPP Jacket and Bridge for BARDEGG-2 and Baronia Enhanced Oil Recovery (EOR) Development Project. Awarded to SapuraKencana TL Offshore Sdn. Bhd. (SKTLO), the contract is scheduled to commence in Q1 2017 in East Malaysia.
- Repsol contract. The award is for the provision of transportation and installation of pipeline, substructure and topside for Bunga Pakma Development Project by Repsol Oil & Gas Malaysia Limited (formerly known as Talisman Malaysia Limited). Awarded to SKTLO, the contract is for a duration of 12 months, comprising of transportation and installation of Bunga Pakma, a wellhead riser platform which includes jacket, piles, topside, wet gas pipeline and subsea composite cable.
- SKD Alliance contract. For a duration of 5 years firm with an optional extension for an additional 5 years and scheduled to commence in April 2018, the contract is by Brunei Shell Petroleum Sdn. Bhd. for the provision of the SKD Alliance Tender Assist Drilling Rig awarded to SapuraKencana Drilling Sdn. Bhd.
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