Sapura Energy

Sapura Energy

Postby winston » Wed Jun 18, 2014 8:30 am

not vested

The incredible bulk

SapuraKencana has announced that it has secured three new contracts and a contract extension for four of its drilling rigs.

Worth US$700m, the contracts were awarded by Petronas Carigali, Chevron and BP for work in Malaysia, Thailand and Trinidad & Tobago at an average daily charter rate that is above the market rate.

The contracts boost the company's order book by 9% to an unrivalled RM28.1bn.

We continue to value the stock at 23.4x CY15 P/E, a 40% premium over our implied target market P/E of 16.7x, but still within the historical P/E range of the oil & gas big caps.

We maintain our Add rating, with strong order book momentum as a potential catalyst.

SapuraKencana remains our high conviction call and top pick among the oil & gas big caps.

Source: CIMB
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Re: Sapura Kencana

Postby winston » Thu Oct 09, 2014 10:57 am

SapKen acquisitions bear fruit

BY TEE LIN SAY

http://www.thestar.com.my/Business/Busi ... he-offing/
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Re: Sapura Kencana

Postby winston » Thu Oct 09, 2014 10:58 am

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SapuraKencana Q2 profit up 8.6%

http://www.thestar.com.my/Business/Busi ... rises-249/
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Re: Sapura Kencana

Postby winston » Thu Oct 09, 2014 11:00 am

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June 20, 2014

SapuraKencana sees five-fold jump in Q1 earnings

http://www.thestar.com.my/Business/Busi ... -drilling/
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Re: Sapura Kencana

Postby winston » Fri Oct 10, 2014 12:34 pm

vested

Sep 26, 2014

Valuation & Recommendation

Reiterate BUY call at a lower target price of RM6.03 (previously RM6.06) as we roll over to FY16 valuation.

Our target price is based on FY16 EPS forecast of 25.7 sen and forward industry PER of 23.5 times.

Our TP translates into a potential upside of 46% for the stock.

Remain optimistic - We are upbeat on the stock which is sustained by its sizeable orderbook and global foray.

Source: JF Apex
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Re: Sapura Kencana

Postby winston » Fri Oct 10, 2014 7:20 pm

vested

Sep 2, 2014

Orderbook at c.RM25bn with more to come.

We make no changes to our estimates as the contracts announced are part of our order book replenishment assumption of RM4-5bn per annum. We expect more contract flows for T&I and fabrication. The group’s current orderbook is c.RM25bn.

Maintain BUY, TP RM5.55.

We maintain our BUY recommendation on SAKP and TP of RM5.55 based on 22x FY15F PE.

SAKP is attractively priced at 17x FY15F PE compared to large cap peers averaging above 20x.

Exciting times ahead with the maiden RM4.2bn Petrobras contract commencing this quarter and healthy earnings coming through from upstream production.

Source: Alliance
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Re: Sapura Kencana

Postby winston » Fri Oct 10, 2014 7:23 pm

vested

Sep 2, 2014

Valuation

Maintain Buy on SAKP with unchanged target price of RM5.98 based on 24x CY14 P/E.

The group’s near term catalysts include:
1) strong EPCIC contender for upcoming Enhanced Oil Recovery (EOR) projects (Semarang, Kasawari, West Sepat, Baronia-Bardegg 2 etc.),
2) likely award of new Risk Service Contract for Bubu marginal field,
3) upside in reserves and inking of new gas agreements for Newfields Malaysia,
4) potential winning bid for Petronas’ PSC blocks at Vietnam which are up for sale, and
5) SAKP is a strong contender for Phase 3 of Petrobras’ PLSV tender.


Source: TA Securities
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Re: Sapura Kencana

Postby winston » Sat Oct 11, 2014 7:10 am

vested

April 11, 2014

SapuraKencana Petroleum Bhd

By AmResearch

Buy (maintained)
Fair value: RM5.70

AMRESEARCH said it maintained a “buy” recommendation on SapuraKencana, with an unchanged fair value of RM5.70 per share, based on financial year 2015 price/earnings (PE) of 22 times, which was the 2007 peak achieved by Kencana Petroleum.

It said it maintained SapuraKencana’s financial year ending Jan 31, 2015 (FY15) to FY17 forecast, which would not be affected by changes in shareholder stakes.

Seadrill Ltd has placed out 230 million SapuraKencana shares at RM4.30 per share, valued at RM989mil, which will reduce Seadrill’s stake in SapuraKencana from 12% to 8%.

Seadrill chairman and major shareholder John Fredriksen has said his company, which entered into a lock-up agreement for its remaining stake in SapuraKencana, would remain as a long-term strategic investor in the group.

AmResearch believed that should Seadrill eventually dispose of its entire stake in SapuraKencana, it would be gradual given that Seadrill had a strong business relationship with the group via 50:50 joint ventures in six pipe-laying flexible support vessels, each potentially worth US$300mil, which have been chartered to Brazil’s Petrobras.

According to Fredriksen, Seadrill is currently exploring other business ventures with SapuraKencana. Fredriksen is currently an alternate director to Tor Alav Troim, who is a board member of SapuraKencana.

Following this share sale, Seadrill will be the fourth largest shareholder in the group after Sapura Holdings (16.8%), the Employees Provident Fund (11.7%) and Khasera Baru (10%).

AmResearch said the changes in shareholder levels did not affect its positive outlook on SapuraKencana’s prospects given the group’s game-changing and earnings-transforming US$898mil (RM2.8bil) acquisition of Newfield International’s oil and gas production blocks in the peninsula, Sabah and Sarawak.

As SapuraKencana was poised to become a truly formidable regional oil and gas upstream operator, AmResearch said its share price had outpaced the FBM KLCI by 13% over the past 12 months.

However, AmResearch said SapuraKencana’s aggressive acquisitive earnings acceleration (107% in FY14 and 59% in FY15 forecast) translated to a still attractive FY15f PE of 16 times currently — a 45% discount to SapuraCrest Petroleum’s peak of 29 times in 2007.

Source: The Star
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Re: Sapura Kencana

Postby winston » Thu Oct 23, 2014 5:41 am

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SAPURAKENCANA PETROLEUM BHD
By Alliance DBS
Buy (maintained)
Target price: RM5.40


BELIEVING that weaker crude oil prices are here to stay, Alliance DBS has lowered its price-to-earnings ratio valuation target to 20 times from 22 times previously but is maintained its “buy” call on SapuraKencana.

With the earnings cut and rolling over valuations to financial year 2016 forecast, it derived a slightly lower target price of RM5.40 from RM5.55 previously.

Alliance DBS noted that SapuraKencana’s earnings were largely insulated from the recent weakness in crude oil prices.

After its downgrade of Brent crude oil price assumptions to US$95/barrel from US$106/barrel previously, it said SapuraKencana’s FY15-17F earnings were trimmed by only 4%-5%.

Besides the production segment, it said SapuraKencana’s earnings were largely intact as they were backed by its solid RM25bil order book, which largely comprised long-term contracts.

This includes the pipe lay support vessel charters from Petrobras (47% of order book) and the Pan Malaysian installation contracts (20% of order book).

The drilling business is also stable (19% of orderbook) as are its other segments like sub-sea services and hook-up and commissioning.

As such, excluding the production segment, SapuraKencana’s earnings for the remainder of FY15 and even at least 60%-70% of FY16F earnings are largely intact.

Alliance DBS noted that current valuations ignored the Newfield acquisition, adding that with the recent sell down, SapuraKencana’s valuations were attractive at only 14 times FY15F and 13 times FY16F as the stock had been trading comfortably past 20 times PE previously.

At the current price, it said it appeared that most of the value accretion from the Newfield acquisition had been wiped out, which was unjustified as it has producing assets with potential for more via new gas discoveries.

Source: The Star
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Re: Sapura Kencana

Postby winston » Thu Oct 23, 2014 7:00 pm

Good valuations for SapuraKencana
21 OCTOBER 2014

KUALA LUMPUR: SapuraKencana Petroleum Bhd’s valuations are now attractive with the recent selldown of its shares, said DBS Group Research.

“With the recent selldown, SapuraKencana’s valuations are attractive at 14 times financial year 2015 and 13 times financial year 2016, as the stock has been trading comfortably past 20 times price earnings (PE) previously.”

DBS Research also said at the current price, most of the value accretion from the group’s Newfield acquisition has been wiped out, which is unjustified as it has been producing assets, with potential for more via new gas discoveries.

“Based on our view that weaker crude prices are here to stay, we are lowering our PE valuation target to 20 times from 22 times previously,” it said in a report yesterday.

DBS Research has maintained its “buy” call on SapuraKencana, with a slightly lower target price of RM5.40.

The firm, however, has trimmed SapuraKencana’s earnings forecast for financial years 2015 to 2017 (FY15-17) on the back of lower crude oil price assumptions.

“Following our downgrade of Brent crude oil price assumption to US$95 per barrel from US$106 per barrel previously, SapuraKencana’s FY15-17 forecast earnings are trimmed by only four to five per cent. The group’s earnings are largely insulated from the recent weakness in crude oil prices.”

The firm said SapuraKencana’s earnings are largely intact as these are backed by its solid order book, largely made up of long-term contracts, including pipe lay support vessel charters from Petrobras.

Source: NST
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