Perdana  Petroleum  announced  that  its  wholly-owned  subsidiary, Perdana  Neptune  Limited  has  disposed  one  unit  of  offshore  support vessel  (OSV)  to  Hauston  Limited  for  USD28.5m  (RM93.5m).  Perdana expects to recognise RM1.0m gain on the disposal. The disposal is part of Perdana's fleet renewal programme - the group had earlier announced the  acquisition  of  an  additional  two  units  of  500-men  accommodation work barges. (Source: Bursa Malaysia)

Comments:  We believe that the vessel disposed is Perdana Superior, a 300-men accommodation work barge launched in 2010. We are slightly negative  on  the  disposal  -  while  we  like  management  for  its  proactive approach in managing its balance sheet, the disposal may result in a 5% earnings  loss  for  2015-16E.  No  change  to  our  earnings  forecast,  ADD rating and price target of RM2.08 for now pending  further management guidance.

Source: Affin Hwang Capital Research - 30 Oct 2014