KUALA LUMPUR: Public Invest Research is maintaining its Outperform on Perdana Petroleum with a 12-month target price of RM2.07 following the sale of an accommodation work barge for US$28.5mil (RM93.5mil).
It said on Thursday Perdana’s unit Perdana Neptune Ltd was selling the Perdana Superior, a five-year old 300-men barge to Hauston Ltd. The sale value was comparable to its current market rate, it added.
The disposal is part of the group’s fleet renewal programme, and concurrently benefits the buyer by way of obtaining a vessel for a charter contract in hand.
The delivery of the vessel is expected before the end of November 2014 and Perdana Petroleum is expected to receive a gain of RM1mil from the sale.
The proceeds would be used for operating expenses, repayment of bank borrowings and funding of new assets.
“We maintain our Outperform call, however with a revised TP of RM2.07 in light of the revision of asset schedules coupled with weaker industry sentiment,” it said.
Public Invest Research said the original cost of investment for Perdana Superior was RM108mil with a net book value of RM92mil.
“Perdana Petroleum’s performance is reaffirmed by its earnings visibility from its RM1.2bil order book up to 2019 of long-term contracts,” it said.
Its new target price also factored in the soon-to be-delivered Perdana Emerald’s (SK312) prospective charter contracts.
The research house also expects the Perdana Liberty which will be dry docked in November to potentially be chartered by early-2015.
“We are positive on the next kicker for Perdana that is their orders of two units of 500 men accommodation work barge (with an option for another two), scheduled to be delivered 1QFY16 and 2QFY16 respectively,” it said.
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It said on Thursday Perdana’s unit Perdana Neptune Ltd was selling the Perdana Superior, a five-year old 300-men barge to Hauston Ltd. The sale value was comparable to its current market rate, it added.
The disposal is part of the group’s fleet renewal programme, and concurrently benefits the buyer by way of obtaining a vessel for a charter contract in hand.
The delivery of the vessel is expected before the end of November 2014 and Perdana Petroleum is expected to receive a gain of RM1mil from the sale.
The proceeds would be used for operating expenses, repayment of bank borrowings and funding of new assets.
“We maintain our Outperform call, however with a revised TP of RM2.07 in light of the revision of asset schedules coupled with weaker industry sentiment,” it said.
Public Invest Research said the original cost of investment for Perdana Superior was RM108mil with a net book value of RM92mil.
“Perdana Petroleum’s performance is reaffirmed by its earnings visibility from its RM1.2bil order book up to 2019 of long-term contracts,” it said.
Its new target price also factored in the soon-to be-delivered Perdana Emerald’s (SK312) prospective charter contracts.
The research house also expects the Perdana Liberty which will be dry docked in November to potentially be chartered by early-2015.
“We are positive on the next kicker for Perdana that is their orders of two units of 500 men accommodation work barge (with an option for another two), scheduled to be delivered 1QFY16 and 2QFY16 respectively,” it said.
http://www.thestar.com.my
