SKPETRO (5218) - SK Petro - More Wins For E&C
SapuraKencana Petroleum’s (SAKP) wholly-owned
subsidiaries have been awarded a combined value of USD97.4m (RM433.6m)
worth of contracts, predominantly for the engineering and construction
(E&C) division. The Group’s order book wins stands at RM6.1bn for
FY17. We continue to maintain our estimates as we have sufficiently
accounted for the new contract replenishments for FY18F onwards, but
remain mindful that the nature of the contracts, as revenue is
recognised on a progress billing cycle or call-out basis thus would not
have a definitive contract value.
Our Outperform view on SAKP continues to be reaffirmed. Premised to the uptick in oil price sentiment coupled with better activities, we are upgrading our TP to RM2.30 (previously RM1.90) based on our blended SOP valuation as we attach higher multiples to its various divisions.
Our Outperform view on SAKP continues to be reaffirmed. Premised to the uptick in oil price sentiment coupled with better activities, we are upgrading our TP to RM2.30 (previously RM1.90) based on our blended SOP valuation as we attach higher multiples to its various divisions.
- PETRONAS award. SapuraKencana TL Offshore Sdn. Bhd. (SKTLO) has been awarded an umbrella contract by PETRONAS for the provision of Pan Malaysia transportation and installation (T&I) of offshore facilities. The work comprises of T&I of platform, structures and pipelines and its associated works for a duration of one year from 2017-2018.
- PETRONAS Carigali Sdn. Bhd (PCSB) award. For a duration of c.5 months, SKTLO received the award for the provision of engineering, decommissioning, procurement, construction, installation and commissioning for Sepat Mobile Offshore Production Unit Stabilization and Repair Works (Package A).
- Another PCSB award. SapuraKencana HL Sdn. Bhd. (SKHL) secured the award for the provision of procurement, construction and commissioning (PCC) of Full Well Stream (FWS) Air Cooler Module on Central Processing Platform (CPP) NC3CP-A for a duration of 33 months.
- PCPP Operating Company Sdn. Bhd. (PCPP) contract. SKHL has been awarded a contract by PCPP for the provision of engineering, preparation, removal and disposal (EPRD) for Dana and D30 facilities decommissioning project. The contract is for a duration of c.9 months.
Source: PublicInvest Research - 3 Mar 2017
SKPETRO (5218) - SK Petro - More Wins For E&C
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