KUCHING: Perisai Petroleum Teknologi Bhd’s (Perisai) potential investment into a floating, production storage and offloading vessel (FPSO) and an upcoming jack-up drilling rig are expected to set a positive longterm future outlook for the group.
To recap, Perisai announced that the group was in negotiations with EOC Ltd for the acquisition of a stake in the North Malay Basin FPSO.
RHB Research Institute Sdn Bhd (RHB Research) opined that the potential deal could give a boost to Perisai’s incremental earnings by 10 to 13 per cent for the financial year 2013 (FY13) and 18 to 24 per cent for the FY14, based on a 30 to 40 per cent stake in the FPSO.
“In terms of funding, we opine that Perisai would need to raise approximately RM500 million to RM600 million,” the research firm stated om a research note yesterday.
Perisai had also recently entered into a master services agreement with Global Tender Barges drilling, a company within the KCA Deutag group (KCA) as the drilling contractor for its upcoming jack-up rig, the research firm highlighted.
“The appointment of KCA would provide Perisai with the necessary technical expertise to run the jack-up rig for the initial years, as Perisai builds its own capabilities to run the jack-up rig themselves in the future,” it noted.
RHB Research believed that the delivery of the jack-up rig would provide a step up in earnings of 13.5 per cent and 24 per cent for FY14 and FY15 respectively.
Meanwhile, Perisai reported net profit of RM21.4 million for the third quarter of the FY12, which brought its net profit to RM68.1 million (an increase of 576 per cent year-on-year) for the first nine months of the FY12.
Perisai’s robust growth in year-on-year net profit was mainly driven by the contribution from its Mobile Offshore Production Unit (MOPU) which accounted for 42 per cent of the group’s revenue and 52 per cent of its profit before tax, the research firm noted.
RHB Research remained optimistic on Perisai growth and commended the group’s potential FPSO deal as well as its upcoming jack-up drilling rig, thus pegged its fair value at RM1.47 per share based on 13 times 2013 earnings per share.