Main Factors For O&G pick:-
Cheap Valuations - Alam at 0.8x BV, upsides at 1.1x BV, est>+40%
OSV Trading Strategies - Alam with small size AHT & SSV. ImpendingContracts Awards - Petronas Carigali needs 34OSVs, worth RM3.2 bil.
Improving Utilization - Steady daily charter rates. Long term 3-5 years contracts.

Overweight2 OSV Plays in Malaysia:
New OSV Focus Rating Previous Last(19/10) YTD% Target Upsides
AlamMaritim Buy Hold RM0.64 -15.8% RM0.85 +32%

Summary of Oil & Gas Picks:
Rank by Upsides: Rating MarketCap Last(19/10) Target Upside
PerisaiPetroleum Buy RM 903 mil RM 1.06 RM 1.40 +32%
AlamMaritim Buy RM 503mil RM0.64 RM0.85 +32%
BumiArmada Buy RM 10.78 bil RM 3.68 RM 4.88 +32%
Dialog Group Buy RM 5.73 bil RM 2.38 RM 3.05 +28%

Summary of Oil & Gas Picks:
Rank by Upsides: Rating MarketCap Last(19/10) Target Upside
PerisaiPetroleum Buy RM 903 mil RM 1.06 RM 1.40 +32%
AlamMaritim Buy RM 503mil RM0.64 RM0.85 +32%
BumiArmada Buy RM 10.78 bil RM 3.68 RM 4.88 +32%
Dialog Group Buy RM 5.73 bil RM 2.38 RM 3.05 +28%

Time to accumulate for 3rd round!!

Benalec still can buy

Name and Address of Registered Holder:
Kumpulan Wang Persaraan (Diperbadankan)
Aras 4, 5 & 6, Menara Yayasan Tun Razak
200, Jalan Bukit Bintang
55100 Kuala Lumpu


Details of Changes

Date of Notice : 19/10/2012

Transactions:
No. Date Transaction Type No of Shares Price (RM)
1. 15/10/2012 Acquired 743,000 -


Circumstances by reason of which change has occurred:
Purchase of shares in open market by KWAP's Fund Manager.

Nature of Interest:
Direct

Consideration:



No of Shares Held After Changes:
Direct : 59,296,400 shares (7.3900%)
Indirect/Deemed Interest : 0 shares (0.0000%)
Total : 59,296,400 shares

Alam may success bid PM contracts.

Good

Date of Notice : 18/10/2012

Transactions:
No. Date Transaction Type No of Shares Price (RM)
Particulars of Shareholder 36

Name : Foo Polin
NRIC/Passport No./Company No. : 820705-07-5234
Nationality/Country of Incorporation : Malaysian

Address:
Flat L, 24 Redan Place
London W2 4SA
United Kingdom


1. 11/10/2012 Acquired 50,000 RM1.280

Circumstances by reason of which change has occurred:
Deemed interest by virtue of her interest in Oceancove Sdn Bhd pursuant to
Section 6A of the Companies Act, 1965.

Nature of Interest:
Acquisition of shares by Oceancove Sdn Bhd in open market.


Indirect/Deemed Interest : 426,580,400 shares (53.2100%)

Oil and gas sector still promising


THE oil and gas sector is still able to offer promising upside potential to investors over the near to medium term, backed by growing energy demand as well as unlocking of new resources, said a fund manager.

"The oil and gas story is still upholding," said Henrietta Lance, senior portfolio manager of Amundi Islamic Global Resources.

Speaking at a briefing hosted by AmIslamic Funds Management, Lance foresees that Asian energy demand will grow from 18 million barrels a day in 2010 to 24 million in 2020 and 30 million in 2030.

"In Europe, new technology is breathing fresh life into mature Norwegian and UK North Sea reserves and unlocking new resources and extending mature reserve life, while some American manufacturers have taken the decision to 're-shore'.

"Energy is not only 'defensive' in today's markets, there is also upside potential for investors though these dynamics are not yet reflected by equity markets," she added.

In terms of outlook, global resource companies with good visibility of earnings and attractive risk-reward ratios are among the key strengths.

THE oil and gas sector is still able to offer promising upside potential to investors over the near to medium term, backed by growing energy demand as well as unlocking of new resources, said a fund manager.

"The oil and gas story is still upholding," said Henrietta Lance, senior portfolio manager of Amundi Islamic Global Resources.

Speaking at a briefing hosted by AmIslamic Funds Management, Lance foresees that Asian energy demand will grow from 18 million barrels a day in 2010 to 24 million in 2020 and 30 million in 2030.

"In Europe, new technology is breathing fresh life into mature Norwegian and UK North Sea reserves and unlocking new resources and extending mature reserve life, while some American manufacturers have taken the decision to 're-shore'.

"Energy is not only 'defensive' in today's markets, there is also upside potential for investors though these dynamics are not yet reflected by equity markets," she added.

In terms of outlook, global resource companies with good visibility of earnings and attractive risk-reward ratios are among the key strengths.

Lance is over-weighting on well diversified large caps with healthy cash flow profiles in the energy sector.

Meanwhile, AmInvest retail funds director Ng Chze How, who was also at the briefing, commented on AmIslamic Fund Management's AmCommodities Equity fund.

Ng said AmCommodities Equity is a feeder fund that invests in Amundi Islamic Global Resources.

"With the recent surge in commodities trend, we have witnessed the fund recording a 8.15 per cent return in just three months.

"This is in tandem with global commodity prices rising 10 per cent in the same duration of July to September 2012.

"The fund has also recorded a one-year performance of 9.63 per cent, outperforming its benchmark of 8.12 per cent," said Ng

RM1.47...good run

Expected correction for few days

RM0.68 level will break soon.

Interesting Points:-

* Currently trading at a low PER of 9.2 times only
* High ROE of 19%
* High ROA of 11%
* Consistent growth in EPS and Revenue from the year 2007/8
* The owner retains close to 66% of total share.

Close to 1 year after winning the job, Benalec Holdings Berhad has announced the signing of development agreements on its 2 Johor land reclamation concessions in Pengerang and Tanjung Piai for the construction o an oil terminal.
Benakec said its 70% owned units, Spektrum Budi Sdn Bhd (SBSB) and Spektrum Kukuh Sdn Bhd (SKSB), will bear all costs of reclaiming the 2 concession areas that span a gross area of 5, 245 acres.
The 2 subsidiaries will bear the cost of major infrastructure works and assume all risks of constructing the 2 integrated petroleum and petrochemical hubs as well as logistic and maritime industrial park along the Pengerang, Kota Tinggi and Tanjung Piai, Pontian coast. The Tanjung Piai project spans 3,485 acres and the Pengerang project 1, 760 acres.
Benalec said it intends to finance the project via internal funds, borrowings and proceeds from land sales. The group added that it is “mindful of maintaining a healthy gearing level” and does not expect the level to rise materially in the financial year ending June 2013.

Volatility and uncertainty are the catchwords for 2012. The stock picks for the year by fund managers reflect a cautious outlook. Apart from stocks with defensive qualities, their choices were skewed towards stocks that cater for consumers, such as those in the food industry. Perisai is one of the counters.

Source: The Edge Magazine, January 9, 2012

Insider is buying again or retail investors, pushing price to RM0.665. More contracts are likely to announce soon. If it happen, the next level should at RM0.77

-Three major research houses have recommended a ‘buy’ call on Perisai Petroleum.

-Mr. Zainol Izzet, CEO of Perisai hold 7.7% of total shares .

-Ezra, a listed ltd in Sinagpore hold 16.1% of total shares.

Above 3 facts has remind us Perisai worth to buy in long term.

KUCHING: Drilling activities in Malaysia are likely to remain robust given the increasingly challenging field exploration to discover new hydrocarbon resources.

According to HWANGDBS Vickers Research Sdn Bhd (HwangDBS Vickers), this was a niche market with growth potential as foreign substitution could play a major role in sweeping drilling contracts for local rig owners that meet the requirements.

It also implied a strong chance for Perisai Petroleum Teknologi Bhd (Perisai) to clinching a contract for its maiden US$208 million jack-up rig which would be delivered by July 2014.

Going forward, Perisai was expected to focus on production and drilling. Its flagship mobile offshore production unit (MOPU) was working for Petronas Carigali Sdn Bhd under long-term contract until September 2013 but might be extended by a year.

“Securing contracts for its MOPU upon expiry should not be an issue given the MOPU’s versatility and mobility, as well as relatively lower operating costs,” said the research firm.

HwangDBS Vickers predicted that the company might not require a rights issue to fund the remaining 80 per cent of the cost of the first rig. The 20 per cent upfront payment was funded partly by borrowings which, the research firm had included in its model.

In addition, the management was considering its option to order a second rig which would expired by February 2013.

Should the management proceeded with the plan, a rights issue could be inevitable as the company might not be able to fund two rigs at the same time. According to the management, there were 25 rigs working in Malaysian waters, mostly foreign-owned.

Net gearing for the company was expected to rise to 102 per cent in financial year 2012 (FY12) before improving to 63 per cent by FY13, premised on strong cash flows from MOPU chartering.

On the other note, Perisai might be able to participate in EOC Ltd’s floating production storage and offloading (FPSO) at Petronas-Hess’ US$5.2 billion North Malay basin development where the gas floater Lewek Arunothai would undergo modification to meet 1Q13 first gas production timeline.

Ezra Holdings Ltd (Ezra) has 24 per cent stake in Perisai currently. This would be reduced to 16 per cent after Perisai’s managing director completes the exercise of his option. As such HwangDBS Vickers noted that Ezra might want to inject the FPSO into Perisai in return for new shares to raise its stake again.

HwangDBS Vickers expected 13 per cent earnings boost by FY14 for 4Q14 contribution before realising full-year earnings impact of as much as 44 per cent earnings growth in FY15. It went on to peg a fair value of RM1.20 per share for the company.

dknycom, good if higher than last year.

Alam Maritim share price is holding the fort at RM 0.50 - RM0.53 for almost 3-4 months since last surge on Oct 2012.

The Chairman of the company Ahamad Sufian bought shares on Jun 04, 2012 from the open market. He paid RM 0.50 for 10,000 shares, added to his interests of 965,000 shares.

Lemabaga Tabung Haji who has quite a respectable records in buying small cap companies has been buying in the open market as well. They already have substantial interests of 9.59% in the company. The dates of open purchased were:

12 July 250,000 shares
13 July 250,000 shares
16 July 250,000 shares
17 July 250,000 shares
18 July 250,000 shares
19 July 250,000 shares
20 July 250,000 shares

The insiders are buying. So why dont we buying too.

Sarawak: Alam Maritim Resources Bhd (Alam Maritim) has been viewed to be potentially on track to a turnaround of its financial outlook on the back of securing three contracts worth RM317 million since August this year.

The latest contract was bagged by its jointly controlled entity Alam Swiber DLB (L) Inc in which it signed an agreement with Newcruz Offshore Marine Pte Ltd worth RM18 million for the charter of a pipelay barge identified as 1MAS-300.

OSK Research Sdn Bhd (OSK Research) was positive on the news but made no changes to its earnings estimate as it had earlier assumed some job replenishments for Alam Maritim’s pipelay barge and associated vessels.

“We continue to believe that the company’s turnaround prospects could be intact provided that it can continue to secure new contracts and improve the execution of its operations as well as strengthen its earnings track record in the coming quarters.

“Moving forward, we expect more projects to be handed out to Alam Maritim in the next six months in anticipation of more activities in the oil and gas sector (O&G) next year.”

Taking a similar positive stance on the news was the research arm of Kenanga Investment Bank Bhd (Kenanga Research) which opined that the latest contract win showed that the company “is able to mobilise its pipe lay barge on a spot term basis to keep the vessel occupied during the domestic monsoon season.”

“We have been guided that the pipe lay barge is to be chartered out to India in bareboat condition, hence giving a better earnings margin to the group on the back of the lower cost incurred compared to time charter condition.”

The research house was brought to understand that the daily charter rate would be US$35,000 (about RM108,000) for a firm period of 175 days.

Based on a projected 35 per cent net margin for the contract, it expected a net income contribution of RM6.3 million from the entire contract.

It also expected proportionate net earnings recognition of RM1.6 million each for the fourth quarter of 2012 (4Q12) and 1Q13 respectively, which it had factored in into its financial year 2012 (FY12) and FY13 estimates earlier.

Given that Newcruz Offshore Marine Pte Ltd and Swiber Offshore (India) Pvt Ltd are Swiber Holdings Ltd’s subsidiaries Kenanga Research believed that through such a strategic networking tie-up, that Alam Maritim would be able to secure more international charter agreements in the future.

“The trend of its increasing order book implies a better prospect for the group and the sector moving forward.

“We expect a strong second half of 2012 on the back of an assumed vessel utilisation rate of a healthy 80 per cent for its offshore support vessel (OSV) segment and the execution of the remaining RM10 million of its RM20 million Sabah Oil and Gas Terminal project.” Citing lower than expected figures for OSV utilisation, charter rates and project replenishments as potential risks to its unchanged forecasts for FY12 to FY14, Kenanga Research maintained the target price of RM1.14 per share.

Despite making no changes to its earnings estimate, OSK Research revised its fair value for the stock upwards to RM1.25 per share as it rolled over its valuations to 12 times FY13 earnings.

In line with its bullish view on the O&G sector, the research house believed that Alam Maritim’s valuations could rerate towards 10 times to 12 times forward earnings if the latter would be able to improve its earnings track record in the coming quarters.

Benalec has the balance sheet (FY13F net gearing: 0.1 times) to embark on massive project, which requires up front payment from buyers. Major shareholder the Leaw family have raised their stake in Benalec to 54%. This is backed by yields of 4.5% to 6.3% dividend.

Alam Martim rank no 1. Thus will surge like Perisai too.

Perisai have potential since last 5-7 weeks (RM0.88) and surge until today (RM1.06). Hopefully it hit above RM1.20 due to drilling project in Malay Basin.

Alam Martim is coming out due to O&G activity/contract coming out from Petronas and other operators within the next 6 months. Worth of RM36 billion contracts going to benefit Alam Martim too. When O&G sector boom, all O&G counters will boom too.

Happy trade.

Pacino & Buybackma, hope you guys/gals earn some money. I have information from good friends and hope it really help to analyse the trend and which counter to invest. Benalec is one that showing potential since it not under investor radar since listed in Bursa. Value of the Pengerang's land will worth at least RM1.00 extra more for it share. Calculation just work but market might not react.

1,700,000 shares only, each person buy 6,000 shares, just need 300 person. 23 persons from each states in Malaysia..easy

HOLD HOLD HOLD

Coming months, the first acquisition could be a stake in Emas Offshore’s (EOC) FPSO.
In order to exchange for stakes in the FPSO, Perisai could either issue more shares, or raise capital through rights issue.Recall that EOC which is also Ezra's 46.5% associate, was reported to have received a Letter Of Intent to supply and operate a floating, production, storage and offloading vessel to HESS, for the Kamelia gas field.
EOC still needs to meet strict domestic content requirements for off-shore projects, and it could be salvaged through Perisai’s 40%-owned Larizz Petroleum which is licensed to bid for local contracts.

Calculation shows that by securing a 50% stake in a US$300m FPSO is expected to raise the company’s fair value by RM300m or RM0.53 per share, assuming a project internal rate of return of 15%, while enhancing earnings by RM38m per year.

Meanwhile, the market is speculating a second asset acquisition (besides the FPSO for HESS), but the value is unknown at this juncture. This is another project that provide a catalyst to Perisai shares

Coming months, the first acquisition could be a stake in Emas Offshore’s (EOC) FPSO.
In order to exchange for stakes in the FPSO, Perisai could either issue more shares, or raise capital through rights issue.Recall that EOC which is also Ezra's 46.5% associate, was reported to have received a Letter Of Intent to supply and operate a floating, production, storage and offloading vessel to HESS, for the Kamelia gas field.
EOC still needs to meet strict domestic content requirements for off-shore projects, and it could be salvaged through Perisai’s 40%-owned Larizz Petroleum which is licensed to bid for local contracts.

Calculation shows that by securing a 50% stake in a US$300m FPSO is expected to raise the company’s fair value by RM300m or RM0.53 per share, assuming a project internal rate of return of 15%, while enhancing earnings by RM38m per year.

Meanwhile, the market is speculating a second asset acquisition (besides the FPSO for HESS), but the value is unknown at this juncture. This is another project that provide a catalyst to Perisai shares.

An oil and gas support services provider, is poised to move one notch up the ladder in the supply chain of the industry by going into the lucrative FPSO market. Perisai is looking at acquiring stake in a FPSO vessel from its shareholder Ezra Holdings Ltd and the vessel is to be used for providing services to an offshore O&G field in Malaysia .
A consortium led by Ezra has put in a bid to supply the FPSO vessel to cater to the North Malay Basin oil field located off the coast of Terengganu and Kelantan. While reports said Ezra’s wholly owned subsidiary bagged the job, industry executives said nothing has bee firmed up yet and there is challenge from a consortium led by MISC Bhd
Perisai is eyeing a stake in the FPSO vessel from Ezra’s 46.5% unit EOC Ltd, which is listed in Oslo , to fulfill the localization needs, should they arise. It is still being mulled over. It depends on how things develop. If localization is required, Perisai may buy the FPSO.
In the oil and gas’s support services industry, the FPSO segment is considered a better area because of the long term charter. A typical charter is for a minimum of three years and will normally continue as long as the field is producing.
The biggest FPSO licensed holder for Petronas is MISC. The other notable FPSO provider is Bumi Armada but its vessels are mainly chartered for overseas offshore fields.

Perisai should not face any difficulties in funding to purchase the FPSO, as the acquisition will be backed by a long term charter contract. The cost of the FPSO could range from US$300 million to US$500 million.

Ezra’s stake in Perisai is held under two of its units – HCM logostics Ltd and Emas Offshore Sdn Bhd. Following the development in the North Malays Basin , it has been speculated that Emas Offshore has been awarded the contract to provide the FPSO by Petronas Carigali and Hess group JV.

In July 2012, Perisai MD Zainol Izzet emerged as a 7.75% stake by exercising an option with HCM Logistics. After the exercise, Ezra’s interest in Perisai is down to 16.1%.

The shareholder structure now (Oct 2012) allows Perisai to acquire O&G assets. This is because Ezra could raise its stake in Perisai without having to trigger a general takeover.

As at end June 2012, Perisai had cash and bank balances of rm15.91 million and rm287 million in long term borrowings and rm178 million in current liabilities.

It was earlier reported that Bumi Armada had teamed up with Emas Offshore in bidding for the North Malay Basin job and MISC, a 62.7% unit of oil major Petronas, had teamed up with LTH controlled Ramunia Holdings Bhd.

Rating Fair Value
Current RM1.06
Kenanga Trading Buy RM1.18
Consensus Buy RM1.44

Eden: It was not O&G ranking. It was klse.i3investor ranking

Corporate News Flash
Alam Maritim Resources

THE BUZZ
Alam Maritim Resources’ (Alam) jointly controlled entity, Alam Swiber DLB (L) Inc has secured an agreement with Newcruz Offshore Marine Pte Ltd for the charter of a pipelay barge identified as 1MAS-300. The deal is worth RM18m.
OUR TAKE
Positive but no changes to our earnings forecast. The contract is valued at approximately RM18m for a firm charter of 175 days only, commencing by the third week of October 2012. We are making no changes to our earnings estimate as we had earlier assumed some job replenishments for Alam’s pipelay barge and associated vessels.

Turnaround prospects intact.
Including yesterday’s contract, Alam has already secured three contracts worth RM137m in a short span of three months since August. We continue to believe that the company’s turnaround prospects could be intact provided that it could i) continue to secure new contracts and improve the execution of its operations, and iii) strengthen its earnings track record in the coming quarters. Moving forward, we expect more projects to be handed out to Alam in the next six months in anticipation of more activities in the oil and gas sector (O&G) next year.

Maintain BUY. In line with our overweight call on the O&G sector, we believe that Alam’s valuations could rerate towards 10-12x forward earnings if it is able to improve its earnings track record in the coming quarters. Despite making no changes to our earnings estimate, we are revising our fair value upwards to RM1.25 as we rollover our valuations to 12x FY13 earnings. Maintain BUY.

Alam rank no. 3 today, up from no.10 yesterday

Benalec rank no.1

Perisai rank no 2

TP RM1.12 short term

Sapura K may bid and sub to Alam, this is how Malaysia do business.

TP RM1.45 short term

Yes. I receive it this morning by email.

Will they push it up when another two local managers completed their purchases. Let see next week.

A local fund manager just completed their cumulation of shares at average RM1.29.

Target by MBB at RM0.85, assume discount 10% still have RM0.76

It takes time and market force...patient is the key to success.

Today try to break RM0.66, a friendly party just inform me.

Alam moving to RM0.630.

Maybank just upgrade Alam Martim at TP0.85 in their Oil & Gas - Waves of OSV Awards On The Horizon.