Perdana selling Petra Energy. The latter has gone up but not by too much (at 1.14). Its sale price at one times book value is 1.52. Both are worth watching. Where is Mohd Shuk - camana bro?
Based on its historical price, there doesn't seem to be much downside risk. Perdana is making losses and have debts but these are already well-known facts. The most attractive aspect is the tender for its share of Petra Energy of which it owns around 26% - that means money coming in, although a lot would be used towards paying off the debts.
I'm wondering which would be better - Perdana or Petra Energy?
Watch out for this counter. TP is 80 cents, a trading buy.
See what OSK writes.. A Turnaround is at Hand
Maintain Buy. Our fair value for Perdana remains unchanged at RM0.90 based on the existing PER of 12x FY12 EPS. Given that its share price had retraced quite significantly following renewed concerns over the European debt crisis, we advise investors to accumulate Perdana shares on weakness as we expect the share price to rebound when the company shows more concrete signs of a turnaround, especially after securing new jobs.
...and CIMB writes too.
Calmer waters ahead
Though Perdana’s 1Q net loss of RM8.2m was a letdown because of low vessel utilisation, a profitable finish for FY12 is still within reach. We also understand that good progress has been made on the tender for the proposed sale of the company’s 26.9% stake in Petra Energy. We cut our FY12-14 EPS for lower revenue assumptions. Our target price drops as we update our RNAV calculation. Perdana remains a Trading Buy as we expect the sale of the stake to be a short-term catalyst. We impute a 10% premium in our RNAV calculation to reflect the potential value of the stake to be sold.
Eyeing regional works Excluding the seven old vessels which were a drag on earnings, Perdana’s fleet comprises 13 newbuilds from its fleet renewal programme that began in FY07 and was completed in Dec 11. Equipped with this young fleet, Perdana is scouting for work in Thailand, Indonesia, Vietnam and Myanmar.
It *has* to sell due to its debts. Although Perdana will lose a profit-making company, at the same time its debt ratio will improve. Better sell when you are still in a strong position to bargain rather than during a more desperate time when Petra Energy might be sold at fire sale price.
agree with mat cendana..Perdana has to sell their stake in penergy to recover n cut the co debts... it will improve the co financial position after this... let see the perdana offer price to waseong
analyzing all the write ups and the recent developments,potentially strong for further upside,nizam razak connection, should be no problem with Petronas.
Don't buy Perdana son WA as premium is very very high at more than 95%, susah to make money....go for beautiful mother instead as it will be sailing again soon.
THE sale of Perdana's 26.9% stake in Petra Energy to Wah Seong is long overdue as it lost control of the latter in financial year ended Dec 31, 2009 (FY09). The block is valued at RM97mil, which is set to help Perdana trim its debt and return to profitability.
We raise our FY12 to FY14 earnings per share (EPS) to account for interest savings. Our target price increases as we update our revised net asset value calculation. Given that the stake sale is almost a done deal, removing the risk we had factored in earlier, and there is the possibility of a turnaround in second quarter of 2012, we upgrade Perdana from “trading buy” to “outperform”.
Perdana has signed an agreement to sell its 26.9% stake in Petra Energy (Not Rated) to Wah Seong (Outperform) for RM97mil or RM1.68 per share, 3.7% above Petra Energy's net tangible assets and Perdana's cost of RM1.62 per share (see our separate note on Wah Seong). The block was put up for sale through a restricted tender process in April.
We reiterate our positive view on the divestment, which is long overdue as Perdana lost control of Petra Energy in FY09 to Shorefield Resources, which has a 27.3% stake. Shorefield is owned by Sarawak-based businessman Datuk Bustari Yusof. Proceeds from the divestment will help Perdana reduce its borrowings and return to profitability. Of the RM97mil proceeds, RM65.5mil will be used to pare down debt, RM28.5mil for working capital and RM3mil for expenses. We expect net gearing to drop from 0.6 times as at March 31 to 0.4 times by end-FY12. For FY12-14, EPS is expected to be boosted by 3-6%, more than offsetting the associate income forgone. On top of that, Perdana is likely to return to the black in the second quarter after a string of quarterly losses. We note that substantial shareholder Dayang (not rated) has been buying actively.
We advise investors to accumulate. Marine support remains the weakest segment in the oil and gas sector but we are encouraged by Perdana's potential turnaround in the second quarter.
Chong, Perdana drop again... opportunity to buy at weak? bottom support at 0.61....if break, revisit next level 0.55. But the catalyst here is Perdana will turn Black hoepful in Q3.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Yazid Gonzales
149 posts
Posted by Yazid Gonzales > 2012-04-08 10:08 | Report Abuse
ye..ye...je la OSK nie