Maintain Buy; RM5.62 TP has upside potential. The Petronas Carigali Sdn
Bhd (PCSB) contract charter for the T-9 rig is earnings- neutral to
SapCrest, for the daily charter rate (DCR) is relatively similar its
previous contract with EMEPMI albeit for a shorter duration. With two
more rig contracts set to expire by 1H12, we expect minimal difficulties
in seeking contract extensions at decent rates owing to the greater
number of drilling programmes planned for the next two years. Our RM5.62
TP excludes contributions from its 49% stake in FPSO Berantai.
Incorporating this would lift our TP to RM5.94.
Maybank Research 7 March 2012
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