KUALA LUMPUR: SapuraKencana Petroleum Bhd snapped a five-day loss to close firmly at RM3.81 yesterday, spurred by robust quarterly financial performance.
The share price of the country's largest integrated oil and gas player rose 12 sen, or 3.25 per cent, with 14 million units changing hands.
Analysts said SapuraKencana's second quarter results ended July 31 are largely in line with their expectations.
Four research houses - JFApex Securities, Kenanga Research, Affin Research and AmResearch - have retained their "buy" calls on the counter, with target prices of between RM4.62 and RM4.76.
SapuraKencana's second-quarter net profit soared 132.5 per cent to RM410 million from RM176.5 million a year ago. Revenue expanded 21 per cent to RM2.49 billion from RM2.05 billion in the same period last year.
Alex Goh of AmResearch said the improved results are due to the Seadrill tender-rig acquisition and the consolidation of SapuraCrest and Kencana Petroleum, which was completed in May last year.
"Revenue growth was led by the drilling division following the acquisition of Seadrill," he said in a note.
Despite a three per cent quarterly decline in job orders, the group's orderbook of RM24.8 billion remains the largest within the industry and is double that of its nearest peer, Bumi Armada Bhd. This provides SapuraKencana an earnings visibility for the next three years.
After the deferment of the RM1 billion Semarang central processing platform (CPP) project, it is now eyeing new contracts worth RM25 billion and hopeful of securing one of the other eight CPPs by year-end.
Meanwhile, concerns have been raised over the latest syariah-compliant guideline by the Securities Commission that will be effective starting next month.
Under the guideline, SapuraKencana is not considered syariah-compliant due to its mixed borrowings.
The company has been given a six-month grace period to rectify the issue.