Alam Maritim announced that its 50%-owned joint controlled entity, Alam Swiber  Offshore  (M)  Sdn  Bhd  has  secured  a  RM22m  contract  from Chevron  Malaysia  for  the  installation  works  for  the  replacement  of  a subsea  pipeline  at  Chevron’s  Prai  Terminal.  The  contract  is  expected  to commence in early June 2015 and to be completed by 31 December 2015. (Source: Bursa Malaysia)

Comments: We are positive on the contract win – the subsea pipeline replacement contract will improve the utilisation of Alam’s pipelay barge 1MAS-300 which is largely idle in the recent months. With the Chevron contract, Alam has secured RM81m worth of subsea services/offshore installation & construction contracts year-to-date, within our 2015E win assumption of RM150m. We maintain earnings forecasts and HOLD rating.

Source: Affin Hwang Capital Research - 24 Jun 2015