SapuraKencana Petroleum; Buy; RM4.18
Price Target: RM4.20; SAKP MK

SAKP announced that it has been awarded with a US$35m (~RM108m) installation contract from PTSC Offshore Services Joint Stock Company for the offshore facilities for Diamond Development Project, Blocks 01 & 02. The job will involve installation services for platform and pipeline in the Diamond field, located 18km north of Ruby field and 155km east of Vung Tau.

There is no change to our earnings forecast given the relatively small contract amount vis-à-vis its strong order book of RM18bn. We continue to like SAKP as its unrivalled integrated offshore services will naturally place it among the frontrunners for bidding of mega projects in Malaysia. We reiterate our BUY rating but our TP is now under review given the share price rally post-GE (+37%).

Source: HwangDBS Research - 5 Jun 2013