Scomi Energy

Scomi Energy

Postby winston » Sun Feb 16, 2014 6:44 am

Quek buys block in Scomi Energy? by john loh AND intan farhana zainul

Quek has emerged as a strategic shareholder in other O&G companies.

A BIG block of shares has changed hands in Scomi Energy Services Bhd, likely to savvy oil and gas (O&G) investor Tan Sri Quek Leng Chan, sources say.

The cigar chomping banker, who has emerged as a strategic shareholder in various O&G companies in recent months, bought the Scomi Energy shares directly or through his stable of companies, people familiar with the matter tell StarBizWeek.

Stock market data showed that 268.79 million shares, or an 11.48% stake, were traded off-market yesterday at 76.5 sen a share.

Scomi Energy last closed at 99.5 sen, up 11 sen for the day on reasonably heavy volume of 25.28 million shares, a sharp spike from only 1.8 million shares the day before, giving the counter a market capitalisation of RM2.33bil.

It had earlier hit a day-high of RM1.01, the stock’s best run since 2005.

Other Scomi-related stocks rose in tandem. Holding company Scomi Group Bhd added 1.5 sen to 39.5 sen with 17.27 million shares traded, and Scomi Engineering Bhd 1.5 sen to 43.5 sen, but on low volume of 349,500 shares.

At 76.5 sen, the block in Scomi Energy was transacted at a discount of 23 sen, or 23.1%, to its market price.

The stock has enjoyed a stellar 25.2% gain year-to-date, spurred by talk that it is close to securing a risk service contract (RSC) from Petroliam Nasional Bhd to develop a marginal oilfield off the coast of Terengganu.

The block’s seller is believed to be its second-largest shareholder Standard Chartered Private Equity Ltd. According to stock exchange filings, the Hong Kong-registered entity owns exactly 268.79 million shares in Scomi Energy.

Market observers say Standard Chartered Private Equity had been looking to hive off its stake for months now, even going on the road to interest fund managers and potential investors.

It is not known why Quek, long seen as a shrewd investor, scooped up the shares in Scomi Energy, but this would add to his sizeable holdings in O&G companies.

Quek, 71, is also understood to have stakes in O&G-based special purpose acquisition company Sona Petroleum Bhd as well as TH Heavy Engineering Bhd.

The Hong Leong Group supremo had previously acquired shares in Kencana Petroleum Bhd, Petra Perdana Bhd (since renamed Perdana Petroleum Bhd) and Singapore-listed subsea and drilling services provider Mermaid Marine Public Co Ltd during the latter’s listing in 2007 together with Datuk Mokhzani Mahathir.

Standard Chartered Private Equity is said to have joined the Scomi fold in 2007 when it bought 19.9% of Scomi Oilfield Ltd for US$99.5mil at a premium of 22 times forward price-to-earnings.

That unit housed the Scomi group’s prized drilling fluids and drilling waste management operations, which Scomi itself had obtained in 2003 via KMC Oiltools for US$130mil.

The Hong Kong private equity fund’s interest in Scomi Oilfield was later swapped for its current 11.48% stake in Scomi Energy under a restructuring of the Scomi group.

Most of Scomi’s O&G businesses have been consolidated under Scomi Energy, creating three distinct entities on Bursa Malaysia.

Scomi Energy bagged earlier this week an RM195mil contract from PTTEP Siam Ltd and PTTEP International Ltd to provide drilling fluids services for an onshore drilling campaign in Thailand.

So far this year it has clinched jobs worth more than RM360mil. Last month, the group won contracts in Myanmar and Indonesia valued at RM90mil and RM75mil, respectively.

The Thai deal, its largest oilfield services award there, boosts its order book to a record RM5.3bil.

Its shares have rallied on the back of reports that the Ophir RSC cluster, for which Scomi Energy is cited as a frontrunner, is worth about RM1.68bil, with 5.1 million barrels of recoverable oil.

Scomi Energy is to take up a 30% stake in the venture, sharing the pie with Australia’s Octanex (50%) and Petronas Carigali Sdn Bhd’s Vestigo Petroleum Sdn Bhd (20%), a unit of the national oil corporation set up to develop marginal oilfields.

Experts say that while an RSC is capital-intensive, the one eyed by Scomi Energy needs an investment of only US$100mil (RM332mil) to US$300mil (RM996mil).

For its second quarter ended Sept 30, 2013, Scomi Energy posted revenue of RM330.37mil and net profit of RM25.07mil, with an earnings per share of 1.07 sen.

There was no comparable period due to the change in its financial year from December 31 to March 31. ... areholder/
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Re: Scomi Energy Services 7045

Postby winston » Fri Oct 03, 2014 6:04 pm

not vested


By Hong Leong Investment Bank

Target price: RM1.23

ACCORDING to Hong Leong Investment Bank (HLIB), Scomi Energy Services Bhd (SES) is actively expanding its team on integrated project management, by building up its integrated capability that include drilling management, sub surface, production, facilities management and operation and maintenance.

It said SES could handle projects from marginal, brownfield and enhanced oil recovery which presented enormous opportunity. The potential markets are Malaysia, Indonesia and Myanmar.

It was confident that SES would secure more risk-sharing contracts and venture into brownfield or enhanced oil recovery businesses in the near future.

On SES’s Ophir marginal field, it said the company mobilising works were on track with drilling expected to start in mid-2015 and scheduled to hit oil by end-2015.

HLIB said SES’ first quarter financial year 2015 (FY15) results report noted that drilling activities in Malaysia had picking up with rig counts increased from four rigs in June 14 to six rigs in Sept 14 and were expected to hit 12 rigs by end of financial year 2015 (FY15).

HLIB saw multiple growth catalysts in SES due to potential expanding orderbook from RM5.5bil to RM7bil. It saw potential upside risks to its earnings forecast at a three-year compound annual growth rate of 50% with price-earnings ratio to fall to only seven times in calendar year 2016.

Source: The Star
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