Saturday July 28, 2012
More jobs for SapuraKencana
“We expect fresh contracts to materialise this year two wellhead platforms from the Bunga Dahlia and Teratai fields in Blocks 301 & 302, a central processing platform and multiple wellhead platforms from the North Malay gas basin cluster development,” said AmResearch in a report yesterday.
“Beginning this year, we estimate that the group has secured fresh order contracts worth RM2.6bil (including the RM1.3bil extension of the Pan-Malaysian contract to install pipelines and facilities), versus our forecast new order assumption of RM5bil for financial year 2012,” it said.
Kenanga Research also said it expected more contract wins for the company.
Recently, there have been a slew of news that several domestic projects are tipped for tenders in the second half of 2012 to early calendar year 2013.
For example, they are the North Malay Basin development; Malikai platform fabrication project; EPCIC for Dulang and Samarang oil fields; fabrication for the Bokor redevelopment; the front-end engineering and design tenders for Block SK 316 in Sarawak; and the potential third marginal field award to Coastal Energy.
“Such news have been a positive booster for the sector, which had remained relatively quiet (in regards to contract awards) in the first half of 2012.”
On Thursday, Sapura Kencana told Bursa Malaysia that its wholly-owned subsidiary, Kencana HL Sdn Bhd, had secured two contracts worth RM250mil to RM300mil from Murphy Sarawak Oil Co Ltd.
The contracts were for the provision of engineering, procurement, construction and commissioning of Patricia Satellite-A Platform and Serendah Accommodation-A Platform topsides facilities for the SK309/311 Serendah, Patricia & South Acis Development Projects.
These are part of Murphy Sarawak's SK309/SK311 oil and gas field development located offshore.
“We maintain SapuraKencana's financial year 2013 to 2015 earnings forecast as the new contracts from Murphy are within our expectations, which incorporate new order assumptions of RM5bil-RM7bil annually,” said AmResearch.
TA Securities, meanwhile, said the contract would boost the company's current outstanding orderbook by 1.9% to RM14.63bil, giving it revenue visibility of more than three years.
“Year-to-date, SapuraKencana has announced seven local and overseas contract wins worth RM1.36bil comprising RM310mil and RM893mil of installation of pipelines and facilities and engineering, procurement, construction and commissioning contracts respectively.”
The research house added that it saw no change to its earnings forecasts as the new contract win fell within TA Securities' orderbook replenishment target of RM3bil in its financial year 2013.