On the sidelines of the recent Asia Oil & Gas conference, SapuraCrest confirmed its plans to crack the Middle Eastern market, starting with marine services, followed by the installation of pipelines and facilities (IPF) and drilling. We take a positive view of the company?s early move into this market. However, we understand that the award of contracts, if any, will only take place in FY1/12. We, therefore, maintain our earnings forecasts and target price of RM3.02, pegged to an unchanged target market P/E of 15x. SapuraCrest remains an OUTPERFORM and our top pick for the oil & gas sector. The potential share price triggers are 1) active order book replenishment, 2) success in new markets, and 3) a growing fleet of strategic assets.