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Singapore Investment


  Is the buying interest back for  CARIMIN 5257 CARIMIN PETROLEUM BERHAD?



Carimin Petroleum Bhd have had its fair share of ups and downs in terms of its share price.

Over the past year, it has risen 26.8% to close at 71 sen on June 16.

The counter touched its new 52-week high of 72 sen two days ago.

It was at a year low of 51 sen sometime in October last year.

Does this signal renewed buying interest on Carimin after its breakout above the 69 sen resistance level?

RHB Research believes with the new high coupled with its rising EMAs, additional upside strength may present in the near term.

Investors are probably excited over the prospects of the oil and gas technical and engineering support services provider.

In March, the company secured a work order to provide an anchor-handling tugboat for Petronas Carigali for a period of about six months, with a one-month extension option.

Another catalyst for the optimism on Carimin is the rising oil prices, which could translate into more O&G activities and demand for its services.

The O&G industry will likely enter 2023 with its healthiest balance sheet yet and with continued capital discipline.

Financially, it appears to be making a strong recovery.

In its 3QFY23 ended Mar 31, Carimin returned to the black with a net profit of RM5.1 million from a net loss of RM2.9 million a year ago.

This was on the back of increased revenue of RM44.5 million from RM34.6 million.

Its better revenue was mainly due to commencement of work orders under the Maintenance, Construction and Modification (MCM) services gas cluster contract.

Carimin alsa saw the final completion of its B11 compressor changeout project under its Integrated Hook up and Commissioning (iHUC) projects.

On a 9-month basis, the company’s net profit surged to RM17.2 million from RM3.2 million a year earlier.

It is also heartening to see that its operational cashflow has improved.

Cashflow from operations has turned positive at RM5.4 million in the 3QFY23 versus the deficit of RM17.5 million in 2QFY23.

Moving forward, Carimin believes the positive oil & gas industry outlook and oil price stability provides business and growth opportunities for the group.

Such positive sentiment is reflected with term charters for both the Group’s vessels.

It has also embarked on growing its presence in East Malaysia with land acquisition for yard development whilst continuing to enhance its core competent capabilities.

Premise on the Group’s financial strength, low gearing and capabilities, the Group would actively pursue business and investment opportunities.

Indeed, the outlook looks bright for Carimin, which is slowly gaining ground, as it continues to display improving numbers.


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