Sapura Energy

Re: Sapura Kencana

Postby winston » Thu Oct 30, 2014 12:58 pm

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SapKen not affected by Brazil’s falling real

PETALING JAYA: SapuraKencana Petroleum Bhd (SapKen) is not affected by the politial developments in Brazil, that has caused the currency and capital markets in that country to take a beating, according to an analyst.

The analyst said that under the terms of the contract, SapKen was paid in US dollars for services it provided, something that insulated the company from the volatilty of the Brazilian real.

“SapKen is paid in US dollars. Also any cost incurred in local currency will become cheaper for the company. It is well insulated from the problems in Brazil,” said the analyst.

“The company’s operations in Brazil are based on long-term contracts that have already been locked in on US dollar terms. This means the recent decline of Brazil’s real against the US dollar has no implications on SapKen’s earnings.”

It was reported two days ago that SapKen, which has come under selling pressure amidst falling oil prices in recent weeks, saw its problems compounded by the political climate in Brazil.

Some 49% of its orderbook of RM26.8bil is related to work in Brazil, where the currency fell to a nine-year low against the US dollar following investors reacting negatively towards the re-election of President Dilma Roussef.

Yesterday, shares of SapKen have risen in tandem with the slight recovery of global oil prices.

The shares of oil and gas services provider gained four sen, or 1.18%, to close at RM3.43 yesterday.

Volume was moderate with 13.1 million shares changing hands.

Analysts said that the movement of SapKen’s shares indicated that the recent poor sentiment towards the counter was linked to volatility in global oil prices rather than the company’s exposure to Brazil.

Brent was traded at around US$86.50 a barrel yesterday, while US crude was traded at US$81.88 a barrel, both rising by 46 US cents.

Sentiment towards the oil and gas sector has turned negative in recent weeks on the back of high supply amid slowing global growth, which could affect demand for the commodity.

Most international agencies have already cut their forecasts for oil prices.

The latest was Goldman Sachs, which recently reduced its oil price forecast for Brent to US$85 a barrel and US crude to US$75 a barrel in the first quarter of 2015, both down US$15 from its earlier forecasts.

Source: The Star
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Re: Sapura Kencana

Postby winston » Mon Nov 03, 2014 9:51 pm

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CIMB Research maintains Add on SapuraKencana, cuts target price to RM6.84

KUALA LUMPUR (Nov 3): CIMB Research maintained its Add rating on SapuraKencana Petroleum Bhd (Financial Dashboard) at RM3.43 with a lower target price of RM6.84 (from RM7) and said it had learned from management that it was business as usual in post-election Brazil and rig utilisation has improved.

In a note Oct 31, the research house said Sapura Diamante had been dispatched to work for Petrobras in Brazilian waters.

CIMB Research said that meanwhile, the company had secured contracts for the four rigs that were unemployed in 2Q.

“We roll over valuations and our target price falls as we now value the stock at 21.2x CY16 P/E (formerly 23.4x CY15 P/E), a 30% premium over our target market P/E of 16.3x.

“We cut our premium from 40% to 30% to reflect the current weak oil price sentiment.

“We maintain our Add rating, with strong order book momentum and a successful E&P venture as potential re-rating catalysts. SapuraKencana remains our top pick among the O&G big caps,”it said.

Source: the Edge
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Re: Sapura Kencana

Postby winston » Tue Nov 04, 2014 7:27 pm

SapuraKencana shares down on Brazilian operations, oil price By: NADYA NGUI

KUALA LUMPUR: Shares of SapuraKencana Petroleum Bhd fell at midday on Tuesday, on concerns about Petrobras failing to obtain the auditor's approval for its third quarter earnings, according to a report by Reuters.

SapuraKencana’s offshore operations in Brazil for Petrobras were being executed there by its Brazilian joint venture company Sapura Navegacao Maritima, a 50:50 venture with offshore drilling firm Seadrill.

At 12.30pm, its shares fell 12 sen to RM3.27 with some 14.3 million shares done between RM3.27 and RM3.40.

The FBM KLCI was down 7.6 points to 1,845.74. Turnover was 839.58 million shares valued at RM722.11mil. There were 262 gainers, 416 decliners and 298 counters unchanged.

CIMB Research said SapuraKencana’s management stated that its operations in Brazil are going smoothly and payments have been received on time. Support vessels Sapura Diamante and Sapura Topazio have been deployed in Brazilian waters to work for Petrobras.

"We expect their early contributions to be reflected in SapuraKencana's 2HFY1/15 results. We continue to value the stock at 21.2 times CY16 P/E, still at a 30% premium over our target market P/E of 16.3 times," it said.

The research house has maintained its Add rating on the stock with strong order book momentum and a successful E&P venture as potential re-rating catalysts.

"SapuraKencana remains our top pick among the oil & gas big caps," it said.

CIMB urged investors to accumulate the stock following the share price correction, as SapuraKencana offers solid order book and earnings visibility, supported by its exploration and production (E&P) venture, the two long-term contracts in Brazil, as well as various multiple-year offshore construction and drilling contracts.

Meanwhile, crude oil price has fallen 48 cents to US$78.30 and Brent 55 cents to US$84.23.

Source: The Star
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Re: Sapura Kencana

Postby winston » Thu Nov 20, 2014 10:44 pm

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Malaysia's SapuraKencana buys Petronas' blocks offshore Vietnam for $400 mln

Nov 20 (Reuters) - SapuraKencana Petroleum Bhd , Malaysia's largest listed oil and gas services firm by market capitalisation, is buying state oil firm Petroliam Nasional Bhd's entire interest in 3 blocks offshore southern Vietnam for $400 million.

The economic effective date of the transaction is Jan. 1, 2014 and SapuraKencana is entitled to net revenue from these blocks from then, the Kuala Lumpur-based company said in a press release on late Thursday.

"The transaction gives SapuraKencana an immediate foothold in the promising oil provinces offshore Vietnam with cash generating assets that will be earnings accretive to the group," Chief Executive Officer Shahril Shamsuddin said in a statement.

Shares in SapuraKencana ended 0.65 percent higher at 3.10 ringgit, before the announcement was released. The stock has dropped 37 percent in the year to date, underperforming the benchmark stock index's 2.3 percent fall.

Source: Reuters
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Re: Sapura Kencana

Postby winston » Fri Nov 21, 2014 5:54 am

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SapuraKencana Petroleum Bhd (SKPB) said it has entered into three conditional sale and purchase agreements (SPA) to acquire interests in several assets in Vietnam, for US$400 million (RM1.35 billion) cash.

According to its announcement, the agreements were entered via its wholly-owned subsidiaries SapuraKencana Energy Vietnam (Cuu Long) Inc, SapuraKencana Energy Vietnam (Nam Con Son) Inc and SapuraKencana Energy Vietnam (Cai Nuoc) Inc, with Petronas Carigali Vietnam Ltd and Petronas Carigali Overseas Sdn Bhd.

Through the three SPAs, SKPB shall acquire 50% interest in the petroleum contract for blocks 01/97 and 02/97 Cuu Long Basin, 40% interest in the production sharing contract for blocks 10 and 11.1, Nam Con Son Basin, and 36.845966% in the product sharing contract for block 46-Cai Nuoc, Malay-Tho Chu Basin.

“The proposed transaction will enable SKPB to execute its strategy to build a portfolio of assets that will give sustainable growth and visibility on its longer-term income stream,” said the group.

The counter rose two sen to RM3.10, giving it a market capitalisation of RM18.46 billion.

Source: The Edge
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Re: Sapura Kencana

Postby winston » Fri Nov 21, 2014 9:30 am

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Upbeat on SapuraKencana

KUALA LUMPUR: CIMB Equities Research remains upbeat on SapuraKencana Petroleum after it cemented its exploration and production (E&P) presence by scooping up six blocks.

It said on Friday the four blocks in Vietnam would be purchased from Petronas for US$400mil.

Another two blocks in Sabah were awarded by Petronas to a consortium that consists of SapuraKencana, Petronas Carigali and M3nergy after a competitive bidding exercise.

“Building a portfolio of upstream assets that will provide sustainable growth is a natural progression for SapuraKencana following the US$896m acquisition of Newfield's Malaysian assets in February 2014,” it said.

CIMB Research said unlike Newfield's eight oil fields and three (out of four) Vietnam blocks that are already producing, the two Sabah blocks are new ones, underlining Petronas's stamp of approval on SapuraKencana's E&P capabilities.

The Vietnam acquisitions are slated for completion by mid-FY16 and will be funded by the multi-currency financing facility that forms part of the RM16.5bil debt that was restructured earlier this year.

“The three producing blocks could contribute US$40mil in net profit annually, potentially boosting our EPS forecasts by 3% in FY15 and 6% in FY16.

“Meanwhile, the Sabah blocks will first undergo exploration works before producing first oil or gas.

“We advise investors to accumulate the stock as SapuraKencana offers a solid order book of RM26.8bil (as at August 2014) and earnings visibility, supported by its E&P ventures, two long-term contracts in Brazil, as well as various multiple-year offshore construction and drilling contracts,” said CIMB Research.

Source: The Star
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Re: Sapura Kencana

Postby winston » Mon Dec 01, 2014 8:42 am

Blue SKEI scenario

The new blocks in Vietnam and Sabah, which come under SapuraKencana Energy Inc (SKEI), were the key focus points at SapuraKencana’s meetings
with investors at our London conference.

Armed with an RM26.8bn order book, the company is adding upstream acreage to ensure sustainable growth.

Meanwhile, management said today that it expects the stock to return to the Securities Commission’s (SC) shariah list in May 2015.

We continue to value the stock at[b] 21.2x CY16 P/E, [/b]still at a 30% premium over our target market P/E of 16.3x.

Maintain Add with a successful exploration & production (E&P) venture and strong order book momentum as potential re-rating catalysts.

SapuraKencana remains our top pick among the oil & gas big caps.

Source: CIMB

https://brokingrfs.cimb.com/1iNVAWOyu0t ... t8KuY1.pdf
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Re: Sapura Kencana

Postby winston » Thu Dec 04, 2014 10:11 am

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Mokhzani buying back SapuraKencana shares? By Madiha Fuad

KUALA LUMPUR: SapuraKencana Petroleum Bhd ( Financial Dashboard) vice-chairman Tan Sri Mokhzani Mahathir (pic) and Yeow Kheng Chew, the company’s non-executive director, have indicated their intention to deal in SapuraKencana shares during its close period.

A close period refers to the 30 days before the announcement of a company’s quarterly results.

In a filing with Bursa Malaysia on Tuesday, SapuraKencana said the duo had indicated to the company their desire to deal in its shares through Kencana Capital Sdn Bhd, which is Mokhzani’s private vehicle, during the close period.

While the announcement did not say whether their intention is to sell or buy SapuraKencana shares, it is understood that the duo are planning to buy the shares.

SapuraKencana saw its shares battered along with other oil majors since Monday after Petroliam Nasional Bhd group chief executive officer (CEO) Tan Sri Shamsul Azhar Abbas said the company may cut its 2015 capital expenditure by 15% to 20% and the Organization of the Petroleum Exporting Countries decided to leave the cartel’s production quota unchanged.

On Monday, SapuraKencana’s share price plunged 10.36% to RM2.51 from last Friday’s close of RM2.80, rebounding slightly to RM2.56 on Tuesday in tandem with the market. It closed down 4.69% or 12 sen to RM2.44 yesterday. Year to date, the oil and gas (O&G) stock has fallen 49.9% and lost RM2.33 from its peak of RM4.77 on April 3.

Similarly, its market capitalisation has gone down by more than half to RM14.62 billion from RM28.58 billion at its peak this year.

In the latest selldown in O&G stocks, SapuraKencana remained one of analysts’ top picks in the sector.

According to sources, the stock currently has a single-digit price-earnings-ratio of 9.51 times, which is a “good long-term investment”.

In February this year, Mokhzani and Yeow surprised the market when they pared down their shareholdings in SapuraKencana and relinquished their executive roles in the company.

The two, through Khasera Baru Sdn Bhd, another private vehicle of Mokhzani, then sold some 190.32 million SapuraKencana shares at RM4.30 apiece, amounting to RM818.3 million.

After the disposal of the shares, Khasera Baru’s shareholding was reduced to 10.1%. According to Bloomberg, the entity now holds a 9.12% stake.

Other major shareholders in the company include Sapura Holdings Sdn Bhd with a 16.71% stake, the Employees Provident Fund (13.07%), Seadrill Ltd (8.18%) and Skim Amanah Saham Bumiputera (6.23%).

When Mokhzani’s Kencana Petroleum Bhd merged with Tan Sri Shahril Shamsuddin’s SapuraCrest Petroleum Bhd in 2012, Mokhzani had a stake of about 15% in SapuraKencana. Shahril, who is now SapuraKencana president and group CEO, still has his interest of 16.71% through Sapura Holdings.

In June last year, Mokhzani also bought a stake of some 14% in Yinson Holdings Bhd ( Financial Dashboard) when it was trading at around RM1.30.

Source: The Edge
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Re: Sapura Kencana

Postby winston » Sat Dec 06, 2014 7:07 am

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SapuraKencana awarded RM1.58 bil contracts

KUALA LUMPUR (Dec 5): SapuraKencana Petroleum Bhd ( Financial Dashboard) announced that it has awarded eight contracts collectively worth RM1.58 billion (US$459 million).

The news contracts would probably help to stem the fall on its share price, which has taken a nosedive of late amidst concerns over the company’s prospects as a result of the sharp drop on crude oil prices.

Interestingly, its vice chairman Tan Sri Mokhzani Mahathir has picked up three million shares in the past two days.

In its filing to Bursa Malaysia today, the oil and gas (O&G) group said its fabrication, hook-up and commissioning (FHUC) division, and offshore construction and subsea services (OCSS) division both awarded three contracts each, while its drilling division awarded two contracts.

SapuraKencana’s wholly-owned subsidiary Kencana HL Sdn Bhd (KHL) that won all three FHUC contracts, while two were awarded by Petronas Carigali Sdn Bhd, one of it is an engineering, procurement, construction, and commissioning of two wellhead platforms for the Baronia and Tukau field.

One of the three FHUC contracts is expected to complete by the fourth quarter of 2018, the contract is worth about RM480 million. While the other RM140 million contract is for procurement, construction and commissioning (PCC) for the Angsi compression module by Petronas Carigali, expected to be completed by fourth quarter 2015.

KHL’s third award contract, which is worth US$26 million (RM89.7 million) is for the provision of brownfield works on three wellhead platforms, namely Muda Central Processing Platform (MDPP), Muda-A (MDA), and Jengka-B (JKB). These wellhead platform are for the phase 3 development project by Carigali-PTTEPI Operating Company Sdn Bhd, a company associated with PTT Exploration and Production Public Company Ltd (PTTEP), a top-ten publicly-listed company in Thailand stock exchange, according to PTTEP’s website.

For OCSS works, SKP’s wholly-owned subsidiary TL Offshore Sdn Bhd won a contract from Vestigo Petroleum Sdn Bhd for the Tembikai (OIL) Development, a development of Tembikai Marginal field located about 150km east of Terengganu, offshore peninsular Malaysia.

The works are regarding the provision of transportation and installation of the central processing platform for the Tembikai Oil Project.

The scope of work is valued at about US$12.9 million (RM44.505 million), and is expected to be completed around March 2015.

On top of that, SapuraAcergy (Australia) Pty Ltd, a wholly owned entity of SapuraAcergy Sdn Bhd (SASB), a joint venture company equally owned by SKP and Subsea 7 S.A., had entered into a sub-contract with Heerema Marine Contractors Australia Pty Ltd.

According to SapuraKencana, the sub-contract is for the provision of buoyancy tanks removal and disposal for the Chevron Wheatstone project which is located in Wheatstone field, Western Australia.

The sub-contract worth US$18 million (RM62.1 million).

SASB on the other hand, awarded a contract from Total E&P Myanmar for engineering, procurement, construction and installation of the Wellhead Platform 4 and Lower Compression Platform, Pipelines and Cable.

The contract works located in Yadana Field, offshore Myanmar. It is expected to be completed by 4Q2016, and valued between US$120 million and US$130 million (RM414 millon to RM448.5 million).

Also, SKP’s wholly-owned subsidiary SapuraKencana Drilling Holdings Ltd won a contract from Foxtrot International LDC (Foxtrot), a company incorporated in Cayman Islands, yet business activities is mainly in Abidjan, Ivory Coast.

The contract is for the provision of Foxtrot’s Semi-Tender Assist Drilling Rig “SKD Alliance”, with an option to extend for a further three wells.

This contract spans a period of about 400 days commencing February 2015, however SKP did not state the value of it in its filing.

Another wholly-owned subsidiary Seadrill Esperanza Limited, has accepted a three month extension to its contract with Hess Equatorial Guinea Inc, for the provision of its Semi-Tender Assist Drilling Rig “West Esperanza”.

The extension period commencing around September 2015

Source: The Edge

http://www.theedgemarkets.com/my/articl ... -contracts
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Re: Sapura Kencana

Postby winston » Wed Dec 10, 2014 6:06 am

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SapuraKencana Petroleum posts strong Q3 earnings of RM348m By: JOSEPH CHIN

KUALA LUMPUR: SapuraKencana Petroleum Bhd’s earnings jumped 41.8% to RM348.40mil in the third quarter ended Oct 31, 2014 from RM245.55mil a year ago mainly due to higher contribution from drilling and energy services segment.

It announced on Tuesday its revenue increased only 1.2% to RM2.41bil from RM2.38bil boosted by higher contribution from the drilling and energy services segment though there was decline in the offshore construction and subsea services.

Earnings per share were 5.18 sen. It declared an interim dividend of two sen a share.

On the Q3 performance, it said revenue from the offshore construction and subsea services segment fell by RM455.4mil or 36.3% from a year ago mainly due to lower scope of works in line with clients' planned activities.

However, the drilling and energy services segment recorded that revenue increased by RM280.8mil mainly due to the inclusion of the SapuraKencana Energy business. Profit before taxation of RM265.0mil was higher by RM32.5mil than RM232.6mil a year ago, also due to contribution from the SKEI business.

Its fabrication, hook-up and commission segments recorded a 10.4% or 47.4mil increase from a year ago due to the contribution from new projects in the quarter. However, it recorded lower profit before tax as the new projects are in the early stages of construction.

In the nine months ended Oct 31, 2014, its earnings increased sharply by 73.8% to RM1.303bil from RM749.68mil in the previous corresponding period. Its revenue rose 16.2% to RM7.548bil from RM6.494bil.

Its president and group CEO Tan Sri Shahril Shamsuddin said the integration of SapuraKencana Energy, together with the inclusion of drilling for the first full nine months of FY 2015, strengthened the group’s EBITDA profile to RM2.7bil, an 80% increase from the RM1.5bil a year ago.

“The group’s cash position has increased to RM1.9bil, up from RM1.4bil at the end of FY2014.

“Our orderbook is maintained at approximately RM26bil as of Nov 30, 2014. The group is confident in delivering sustained financial performance for the financial year ending Jan 31, 2015, on the back of recurring income from long-term contracts and a strong balance sheet,” he said.

Source: The Star
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