A quiet 2011 end, looking to a better 2012. Alam will announce its 4Q11
results in the next few days, and we expect earnings to be largely
within our expectations. While 2011 was a lacklustre year largely due to
contract delays in the OIC segment and lower vessel utilisation, 2012
earnings should be stronger as existing OIC contract wins will be fully
recognised this year. OSV will be stronger too, as it will enjoy higher
utilisation rates throughout the year. Nevertheless, Alam's net gearing
remains our main concern, and is its Achilles heel, in our view. Alam
therefore remains a Hold with a RM0.85 target price (9x 2012 EPS).
Maybank Research 21 Feb 2012
Click here for full report
No comments:
Post a Comment