SKPETRO (5218) : RHB maintains Buy call on SapuraKencana
KUALA LUMPUR: RHB Research has maintained its Buy call on SapuraKencana (SKP) with a target price of RM4.02 based on a 16 times FY16F P/E, though the research house expects consensus to further trim target prices given the weakened short-term sentiment.
In a note on Wednesday, RHB said assuming Brent crude is less than US$70/bbl, a 25% cut in rig day rates and no pipelay contracts from Brazil, could bring to a target price of of RM1.99, it said.
"The group’s 9MFY15 core profit was in line with our estimates albeit below consensus. We retain our earnings forecasts as we expect seasonally weak OCSS towards 4Q and weaker E&P contributions in FY16 from the oil price slump," it noted.
However, the group has a cumulative RM26.1bil orderbook, and expects more positive results from fabrication tenders in the domestic market.
It also shared its capex plans for the next three years - unchanged from a year ago despite the oil price slump – which largely encompasses development and drilling.
http://www.thestar.com.my
KUALA LUMPUR: RHB Research has maintained its Buy call on SapuraKencana (SKP) with a target price of RM4.02 based on a 16 times FY16F P/E, though the research house expects consensus to further trim target prices given the weakened short-term sentiment.
In a note on Wednesday, RHB said assuming Brent crude is less than US$70/bbl, a 25% cut in rig day rates and no pipelay contracts from Brazil, could bring to a target price of of RM1.99, it said.
"The group’s 9MFY15 core profit was in line with our estimates albeit below consensus. We retain our earnings forecasts as we expect seasonally weak OCSS towards 4Q and weaker E&P contributions in FY16 from the oil price slump," it noted.
However, the group has a cumulative RM26.1bil orderbook, and expects more positive results from fabrication tenders in the domestic market.
It also shared its capex plans for the next three years - unchanged from a year ago despite the oil price slump – which largely encompasses development and drilling.
http://www.thestar.com.my
