Petra Perdana Bhd is a company that investors should look at next year rather than now, as oil and gas activities would be cranked up by then, says OSK Research Bhd.

In its corporate news flash, the research house said based on its recent earnings downgrade, it expects Petra Perdana in its current financial year ended December 31, 2010 to post a net loss of about RM52 million.

In the first half, it had already posted, an after tax loss of RM32.979 million.

OSK Research is maintaining a 'neutral' call on Petra Perdana with the target price for the company unchanged at RM1.21 based on the existing price earnings ratio of nine times earnings per share for next year.

However, the target price of the share will drop to 94 sen per share in view of the earnings dilution, upon completion of its proposed renounceable rights issue on the basis of three rights share for eight existing shares, held at an issue price of 59 sen per rights share.

'We assume that part of the proceeds raised would be used to repay some of the company borrowings and to lower its interest expenses,' OSK explained.

Petra's share price rose three sen to RM1.17 as at 12.30pm today.

Petra Perdana's proposed renounceable rights issues of up to 122.8 million shares priced at 59 sen a share would raise up to RM72.4 million, which will be utilised for working capital purposes, such as to partly pay for its latest vessel, Petra Odyssey.

Petra Perdana has 17 anchor handling tugs, four work barges and three workboats, bringing its fleet to 24 vessels, excluding Petra Odyssey. --Bernama