Wednesday, May 9, 2012

Perisai Petroleum: Maintain BUY - Entering the Rig Charter Space

Maintain Buy, TP of MYR1.13. Perisai has opted to buy a new jack-up rig (with a Jul 2014 delivery date) with the option to acquire another (for delivery by 2015). This is earnings positive and balance-sheet manageable. We have highlighted a likely extension to its business in the past although we reckoned a FPSO venture would have been a more likely prospect. We still do not rule out this FPSO venture, which would be a re-rating catalyst. Our TP tags Perisai at 11x 2013 EPS.

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Source: Maybank Research - 9 May 2012

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