"A gas sales agreement could materialise in 2014; earlier than our projected 2015 - a major positive. Contrary to initial expectations, SAKP may keep its Syariah status. Maintains BUY rating and at RM5.30 target price.

"Post financial year 2014 (FY14) results, we came away positive and remain optimistic of its outlook. The one-off net gain in FY14 was actually lower at MYR59 million compared to estimate of RM138 million," said Maybank.

Maybank noted it was largely made up of forex gain of RM209 million and transaction costs related to Seadrill & Newfield M&A.

"Excluding that, core net profit for FY14 was higher at MYR1,028 million versus our estimate of RM949 milliom, and results would have surpassed our expectations.

"The drilling operations performed better than expected. It reported RM850 million; 70 per cent of group pre-tax profit, on an 8-month consolidated impact from post M&A. This division will continue to anchor and drive earnings in financial year 2015/16."

Maybank said growth will emanate from the 12-month impact and one new rig commencing works in March. Four rig charters will expire in first quarter of FY2015 but we expect contracts to be extended at similar rates.

"Newfield Malaysia earnings will be consolidated from March this year. Oil production is expected to decline over the next 2 years before a rebound in 2016 as it monetises its gas reserves.

"What is of interest is that part of the reserves may turn from 2C to 2P status sooner than expected. There is a strong likelihood that a gas supply agreement may materialise in 2014; earlier than the anticipated 2015."