KUCHING: Researchers at Maybank Investment Bank Bhd (Maybank IB Research) slashed its forecast earnings for Perdana Petroleum Bhd (Perdana Petroleum) after the latter brought forward the dry-docking works for three of its vessels to the fourth quarter of 2014 (4Q14) from the scheduled first half of 2015 (1H15).
This move, Perdana Petroleum said, was to take advantage of low activity during the monsoon period. The vessels involved are Liberty (169 pax workboat), Sovereign (169 pax workboat) and Expedition (10k bhp anchor handling tug and supply vessel).
“Operationally, two offshore support vessels (OSVs) OSVs were off-hire in 4Q14: Horizon and Liberty (since October and November 2014 respectively), following the expiry of their charters,” Maybank IB Research observed. Both vessels are rebidding for works now,” the company said.
Two OSVs on spot charter – 5k bhp AHTS Frontier and Ranger – are on rolling extensions while 10 OSVs remain on long-term charters (five plus one year contracts).
As such, the research firm cut 2014, 2015 and 2016 earnings forecasts for Perdana Petroleum by nine, 18 and seven per cent respectively, taking into account the earlier dry-docking schedules.
“Following the change in dry-docking schedule, only Marathon (12k bhp AHTS) is earmarked for dry-docking works in 2015,” it stated. “Putting things into perspective, we expect Perdana to post a sequentially weaker 4Q14 net profit due to higher opex and lower utilisation.
“The softer year on year earnings for 2015 before rebounding in 2016 are due to fewer OSVs in operation and lower utilisation.”
The research firm went on to note that fleet rejuvenation may be part of Perdana’s 2015 agenda as it targets to refresh its fleet to an average profile of 5.5 years for 2015.
To note, the disposal of Enterprise will lower the fleet profile to 4.9 years.