The SKD Jaya is a semi-submersible self-erecting tender assisted drilling (TAD) rig and is targeted for harsher environment and deepwater drilling operations in combination with floating wellhead platforms such as TLPs and Spars.
KUALA LUMPUR: Maybank Investment Bank Research (Maybank IB Research) says SapuraKencana Petroleum’s (SKPetro) plans to unlock and monetise its gas reserves is a “major catalyst” which has not been factored by the market yet.
The research house said on Monday that its unchanged sum-of-parts based target price of RM2.00 for the integrated oil and gas service provider offered a 27% upside on this move.
“Unlocking and monetising its gas reserve is high on SAKP’s agenda, a major catalyst not factored in by the market yet,” it said in a note.
It added that while the market was likely to be concerned over a report that Petrobras is renegotiating contracts for pipe-laying support vessels (PLSV) in Brazil, the situation is less hostile than expected.
It said The Petrobras job accounts for 6%-8% to SAKP’s earnings per annum.
According to an Upstream article, Petrobras is carrying out a fresh round of contract renegotiations with its PLSV clients.
Petrobras currently has 16 PLSVs operating in Brazilian waters and has ordered another seven newbuilds with delivery scheduled by late 2017.
The SAKP-Seadrill JV has two contracts with Petrobras.
Maybank Research said its earnings forecasts, Buy call and RM2 target price were unchanged.
“Any price weakness from the Petrobras PLSV contract concern is an opportunity to accumulate,” it said.
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