KUCHING: Perisai Petroleum Teknologi Bhd’s (Perisai) announcement that it is purchasing a 51 per cent equity interest in Emas Victoria (L) Bhd (Emas Victoria) will set the stage for the former’s debut into the Floating Production Storage and Offloading (FPSO) market.
“Emas Victoria will be the owner of the Lewek Arunothai FPSO from EOC Ltd (EOC). The purchase consideration of RM271.8 million will be settled via issuance of new shares and sale of50 per cent stake in the Enterprise 3 (E3) pipe lay barge to ECO,” Alliance Research Sdn Bhd (Alliance Research) said in its research report.
Concurrently, Perisai is selling a 50 per cent stake in SJR Marine to ECO Ltd for RM112.7 million. For the remaining RM159.1 million purchase consideration, Perisai would issue 144.7 million new shares at RM1.10 each to EOC resulting in EOC becoming a major shareholder of Perisai, with 13.7 per cent.
According to Alliance Research, the proposed acquisition, expected to be completed by the end of the first half of 2013, would be earnings accretive upon completion. However, dilution from Perisai’s enlarged share base of 1.08 billion and 50 per cent reduction profits from E3 would result in mild earnings per share (EPS) contract of 4.7 per cent in financial year 2013 (FY13).
“Nevertheless, earnings growth trajectory at the EPS level will resume from FY14. We expect FY14 EPS will grow 35 per cent year-on-year compared with 28 per cent before the acquisition. The growth will be driven by the delivery of the jack-up drilling rig and full-year earnings contribution from the FPSO,” the research house said.
It forecasted that in FY15, there would be another jump in EPS of 22 per cent due to full year earnings contribution from the jack-up drilling rig.
Alliance Research, however, made no changes to its estimates at the current juncture, choosing to adjust earnings closer to the target completion of the deal in case there were any delays in fulfilment of the conditions precedent or completion of the vessel refurbishment.