PERISAI (0047) : RHB Research retains Sell on Perisai Petroleum
KUALA LUMPUR: RHB Research is retaining its Sell call on Perisai Petroleum due to a lack of earnings visibility.
It said on Tuesday Perisai continues to be weighed down by its idle assets, with its two jack-up rigs yet to be delivered and potentially facing difficulties in securing charter contracts.
“Reiterate Sell due to a lack of earnings visibility, with a lower 35 sen target price (23.9% downside), based on 8.0 times FY15F price-to-earnings.
“We make no changes to our FY14 earnings forecast but lower our FY15/FY16 estimates by 28%/23% respectively, as we lower our charter assumptions for the idle assets as well as PP102," it said.
RHB Research said Perisai’s management has guided that Perisai is tendering for jobs for its mobile offshore production unit (MOPU), Rubicone, as well as its derrick lay barge (DLB), Enterprise 3.
However, the research house remains cautious on the prospect of obtaining new contracts as these two assets are old and of lower specifications.
http://www.thestar.com.my
KUALA LUMPUR: RHB Research is retaining its Sell call on Perisai Petroleum due to a lack of earnings visibility.
It said on Tuesday Perisai continues to be weighed down by its idle assets, with its two jack-up rigs yet to be delivered and potentially facing difficulties in securing charter contracts.
“Reiterate Sell due to a lack of earnings visibility, with a lower 35 sen target price (23.9% downside), based on 8.0 times FY15F price-to-earnings.
“We make no changes to our FY14 earnings forecast but lower our FY15/FY16 estimates by 28%/23% respectively, as we lower our charter assumptions for the idle assets as well as PP102," it said.
RHB Research said Perisai’s management has guided that Perisai is tendering for jobs for its mobile offshore production unit (MOPU), Rubicone, as well as its derrick lay barge (DLB), Enterprise 3.
However, the research house remains cautious on the prospect of obtaining new contracts as these two assets are old and of lower specifications.
http://www.thestar.com.my
