SapuraKencana

http://www.thestar.com.my/Business/Investing/2014/12/10/SapuraKencana-top-pick/?style=biz

The net profit hit RM1bil for the first time, fuelled mostly by contributions from SapuraKencana Energy Inc.'s (SKEI) and Seadrill's assets.

SapuraKencana top pick among CIMB Research’s O& G stocks

Contributions from SKEI or formerly Newfield’s oil fields and Seadrill's rigs shored up SKPetro’s 3Q net profit by 42% on-year.

The fabrication, hook-up and commissioning (FHUC) segment recorded a contraction, but the offshore construction and subsea services (OCSS) and drilling and energy services segments registered growth, with the main contributors being SKEI's and Seadrill's assets

SKPetro’s  order book is RM26.2bil, including RM1.6bil worth of contracts and contract renewals announced on Dec 5.

“The order book is set to grow as management scouts for more contracts, including one for Teknik Berkat drilling rig, which   targets to get the rig contracted by March 2015



http://www.thestar.com.my/Business/Business-News/2014/12/09/Support-for-oil-majors-Contract-wins-stability-help-stop-SapuraKencana-Bumi-Armada-slide/?style=biz

The contracts, secured over the weekend, consist of three contracts worth RM710mil under the fabrication, hook-up and commissioning division from Petronas Carigali, three contracts worth RM520mil under the offshore construction and subsea services division in Myanmar, and two contracts worth RM350mil under the drilling division for the provision of a semi-tender assist rig in Ivory Coast and Equatoral Guinea.

MIDF Research oil and gas analyst Aaron Tan is still advocating a “buy” on SapuraKencana, although with a lower target price of RM3.70 from RM4.86 previously.

AmResearch analyst Wong Joe Vuei maintains her “buy” call on SapuraKencana but with a lower fair value of RM3.20 from RM4.80 previously

SapuraKencana’s orderbook of about RM28bil remained intact on top of RM19bil more in extension options.

The company’s orderbook is robust enough to withstand short term shocks as around 70% of the orders are from national oil companies and 18% are from international oil companies.

http://www.thestar.com.my/Business/Business-News/2014/12/09/SapuraKencana-Petroleum-posts-strong-Q3-earnings-of-RM348m/?style=biz

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.

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.

Q3 performance,  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.