Tg offshore already now at 1.25, memang celaka report.
Positive news but minimal impact to earnings. We believe this award is an indication of 2 things:
i) the local O&G industry is gradually seeing more contract awards from Petronas and its PSC contractors, especially after a year of minimal new job awards since the beginning of 2009, and
ii) Tanjung Offshore remains as one of Petronas’ preferred supporting O&G services providers since the company is one of the front liners for new contracts after a slow 2009.
Going forward, we see more contracts for the company, especially with the recovery in the global economy coupled with crude oil price inching above USD80/barrel recently. However, we are keeping our FY09-10 earnings forecasts unchanged as we had earlier assumed some jobs replenishment for the company.
Maintain Sell. Our target price for Tanjung Offshore remains unchanged at RM0.88 based on a PER of 7x FY10 EPS. In the shorter term, we remained concerned over the poor results from its UK subsidiary, Citech Energy Recovery Systems UK Ltd, which manufactures CITECH waste heat recovery units. This division has been making losses, dragging Tanjong Offshore’s 3QFY09 performance to a loss.
1 comments:
target price by business times at RM1.59
confirm that this report is celaka : )