Perisai Petroleum falls 4 sen in early trading
Share price of Perisai Petroleum Teknologi Bhd fell four sen to RM1.30 as of 11.01 am on news of the upcoming expiration of the two-year charter of its Mobile Offshore Production Unit (MOPU), Rubicone, by end of this month.
HwangDBS Vickers Research said Perisai Petroleum's share price is likely to see a negative knee-jerk reaction following non-renewal of the MOPU charter.
However, HwangDBS said the weakness offered a good entry to ride on Perisai Petroleum's long-term prospect.
"We expect the group's other quality marine assets to anchor earnings growth from 2014's financial year onwards, especially with the delivery of its new jack-up rigs in 2014 and 2015 financial years," the research house in a note.
It said Perisai Petroleum's earnings are poised to jump 28 per cent and 29 per cent in financial years 2014 and 2015, respectively, due to strong contribution from its jack-up rigs and floating production, storage and offloading (FPSO) vessels.
"A key catalyst would be Perisai Petroleum securing a huge drilling contract for its maiden jack-up rig," HwangDBS said.
Meanwhile, Hong Leong Investment Bank did not rule out a possibility that the MOPU might need refurbishment before being redeployed to other locations, given the differences in properties of various oilfields.
It said Perisai Petroleum received a strong charter enquiries from various clients and was positive to secure a contract by the fourth quarter of 2013.
"We also believe the partnership with Ezra Holdings Ltd is expected to enhance the potential of re-chartering Enterprise 3 (a pipelay barge) to other clients," said Hong Leong Investment Bank in a note.
Kenanga Research said Perisai Petroleum is expected to receive two jack-up rigs in mid-2014 and mid-2015 which should be able to secure contracts as there are at least 17 rigs contracts expiring from mid-2013 to 2015.
"It could take around six months for the MOPU to secure a new contract," it said in a note today.-- Bernama