KUALA LUMPUR: ALAM MARITIM RESOURCES BHD [ ] should be back to black by 3QFY11, after likely breaking even in 2QFY11, said ECM Libra Research.

The research house in a note July 27 maintained its BUY call and target price (TP) of RM1.31 on Alam Maritim, and said its TP is premised on a 14x P/E multiple pegging FY11F EPS.

Alam Maritim on July 26 had announced a new short term charter contract from Petronas Carigali  bringing total new contracts secured this year to some RM190 million.

“We continue to see Alam in a positive light as the group is just turning the corner in terms of earnings. With the jobs already secured this year, we will be hard pressed to see the group making losses for FY11.

“Vessel demand in the offshore O&G industry is indeed making a slow comeback. A drop off in new vessel deliveries in 2010 onwards will help to tighten the supply of vessels in the market, we believe, and eventually bring charter rates higher next year,” it said.