KUALA LUMPUR: Icon Offshore Bhd is likely to record higher utilisation for its jack-up rig and offshore support vessel (OSV) in anticipation of the rising capital expenditure by industry players, said Maybank Investment Bank Bhd (Maybank IB).
Analyst Liaw Thong Jung said Icon Offshore's turnaround story began to gain traction and optimism after securing a short-term jack-up rig contract from ConocoPhillips, following the end of its previous gig (Petrofac) in the fourth quarter (Q4) of 2021.
Icon Offshore recently received a letter of agreement from ConocoPhillips Sarawak for the charter of its jack-up rig - Icon Caren.
The contract, worth an estimated US$9.6 million, will commence in the second quarter of 2022, and the work scope entails drilling three+ine wells for the client's 2022 drilling campaign in Sarawak. Maybank IB said the contract value equates about US$75,000 to US$80,000 (three+one wells), which appears to be higher than its previous job (Petrofac; US$74,000; eight+three wells).
However, he said it is within the prevailing market's rate, and it did not rule out the possibility of the contract containing some 'add-on' items. "The contract tenure (three to four months) is shorter than we initially expected but is not a concern, for we expect high extension/new charter prospects for its jack-up rig over the next 12 months."
The research firm said earnings estimates for Icon Offshore remains unchanged, on expectations of a softer quarter-on-quarter outlook for Q4 of 2021.
This was due to seasonal weakness (monsoon) kicks in, but a stronger FY22, it added.
"Overall, its earnings recovery is tracking to expectation, with its drilling ops continuing to be the company's key earnings driver.
"Maintaining high utilisation for its assets (jack-up rig and OSVs) remains its key performance index, followed by its continued cost optimisation exercise, which includes disposal of ageing/ idle OSV assets."
Maybank IB maintained a buy call for Icon Offshore with a target price of 0.16 as the company's turnaround story has begun to gain traction.
The IEA estimates that 3 million bpd of Russian oil supply could be lost starting in April. This is much higher than the 1 million bpd hit to demand this year the agency now predicts could come from high energy prices, inflation, and the Russian invasion of Ukraine.
The IEA estimates that 3 million bpd of Russian oil supply could be lost starting in April. This is much higher than the 1 million bpd hit to demand this year the agency now predicts could come from high energy prices, inflation, and the Russian invasion of Ukraine.
The IEA estimates that 3 million bpd of Russian oil supply could be lost starting in April. This is much higher than the 1 million bpd hit to demand this year the agency now predicts could come from high energy prices, inflation, and the Russian invasion of Ukraine.
ICON been consolidating for some time now. It’s about time for big boys to throw their wild card here as the Company presented profitable quarters and wins recently. With crude price soaring, new contracts on shipping will be very profitable
Oil prices rallied early on Monday amid EU consultations about potentially joining the U.S. in banning imports of Russian oil. As of 7:45 a.m. ET on Monday, WTI Crude was up 3.87% at $108.91 and Brent Crude was trading up 3.93% at $112.30.
NEW YORK, March 23 (Reuters) - Oil prices jumped 5% to over $121 a barrel on Wednesday as disruptions to Russian and Kazakh crude exports via the Caspian Pipeline Consortium (CPC) pipeline added to worries over tight global supplies. The situation adds to market worries about the ripple effect of heavy sanctions on Russia, the world's second-largest crude exporter, after its invasion of Ukraine. The CPC pipeline is a significant supply line for global markets, carrying around 1.2 million barrels per day of Kazakhstan's main crude grade, or 1.2% of global demand.
Brent crude futures settled up $6.12, or 5.3%, to $121.60, while U.S. West Texas Intermediate (WTI) crude futures rose $5.66, or 5.2%, to $114.93 a barrel. Oil benchmarks have been steadily rallying since Russia invaded Ukraine a month ago in what it calls a "special operation" and United States and its allies slapped heavy sanctions on that nation, disrupting worldwide oil trade. Russia exports between 4 million and 5 million barrels of crude every day, making it the world's second-largest exporter behind Saudi Arabia. Analysts have varying estimates of how much oil will be unable to make it to market.
Lousiest stock. Although high optimism. But share price still lagging confidence from investors. Almost 4 quarters showing profit, but share price flat
since listing FYE 2014 59.34mil profit highest FYE 2015 to 2019 all making lost due to low oil price FYE 2020 31.30mil profit third highest FYE 2021 32.00mil profit second highest
but now should be back on track, share price should be moving
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....
M55555
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Posted by M55555 > 2022-03-14 12:13 | Report Abuse
Berita Harian also come our news cover for Icon Off shore today.
https://www.bharian.com.my/bisnes/korporat/2022/03/933848/icon-offshore-yakin-prestasi-kewangan-meningkat