SapuraCrest Petroleum Bhd is on an improving trend, especially with the Sapura 3,000 now turning in profit and better earning visibility for the installation of pipelines and facilities (IPF) segment, according to ECM Libra Investment Research.
The Sapura 3000 is essentially a pipe-laying vessel with the capability to go into deep and shallow water.
The orderbook for the IPF segment, which bolstered with the production sharing contractors (PSC) umbrella job, stood at RM10.8 billion, ECM Libra said in a statement today.
"The PSC job could essentially be worth up to RM7 billion and RM8 billion if the contract is fully extended for five years, hence earnings visibility for the IPF segment," it said.
The only negative with SapuraCrest's will be the marine segment which during third quarter for financial year 2010 reported a loss of RM21 million due to severe vessel under-utilisation, ECM Libra said.
SapuraCrest's management indicated that the segment would continue to see trying times for at least another two to three quarters, the research house said.
"We are projecting more losses into financial year 2011 and only recovery of earnings in financial year 2012," ECM Libra said.
At 3.10pm today, the SapuraCrest shares traded at RM2.47 each. -- Bernama |
