THE BUZZ
According to press reports, Malaysia Marine and Heavy Engineering (MHB) has been awarded a RM165m contract with Exxon Mobil in relation to the Damar gas development project.

OUR TAKE
Positive, but no surprises. The Damar project, located about 200km off the east coast of Peninsular Malaysia, is one of several investments that would enable Exxon Mobil and Petronas Carigali to develop natural gas assets. This project had beefed up MHB's orderbook to RM2.3bn as of September 2012. Nonetheless, we are not surprised with this latest award as MHB had previously highlighted during the release of its 9MFY12 results that it has secured the job.

No changes to our earnings estimates. The project is expected to be completed by 3Q13. As we had previously factored this contract into our financial model, we are making no changes to our earnings assumptions.

Maintain NEUTRAL. Keeping our earnings estimates unchanged, we are maintaining our fair value at RM4.76, pegged to 22x FY13 EPS.

Source: OSK