WSC loses out on Ichthys job; industry's growing focus on gas. While WSC has again lost out to Bredero Shaw on the Ichthys pipe-coating project, the short-term disappointment will be compensated by the potentials of more lucrative domestic projects. We remain optimistic on its orderbook visibility for pipe-coating projects. WSC remains a Buy with an unchanged RM3.10 TP, based on 14x 2012 EPS. On a larger perspective, the Ichthys award denotes the growing importance of gas resources - positive for the pipe players. O&G remains an Overweight.

Maybank research (24 November 2011)

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