Thursday, April 19, 2018

FW: AmBank Research - Sapura Energy: E&P in the limelight on slow offshore job recovery BUY, 19 Apr 2018




Sapura Energy: E&P in the limelight on slow offshore job recovery           BUY


Our BUY recommendation is maintained on Sapura Energy (Sapura) with unchanged forecasts and fair value of RM1.00/share, based on a 50% discount to FY19F book value. Currently, the drilling division's utilisation is below breakeven at 33% while the engineering and construction segment will only begin to be profitable next year from the newly secured Pegaga central processing platform and additional 3 wellhead platform jobs.


\However, with crude oil prices now trading above US$70/barrel, the limelight has returned to Sapura's exploration and production (E&P) operation, with its proposed listing becoming much more likely and reinvigorates the group's overall re-rating process.


Others :

Press Metal: Alumina shortage to hamper aluminium production              HOLD





Stocks On Radar: Denko Industrial, SIG Gases, T7 Global, Lafarge Malaysia     




Malaysia: Envisage a gradual pickup in inflation

UK: Raising our probability for May rate hike

Euro: Foresee ECB normalising monetary policy




M&A: CVC wants to gobble up Munchy

T7 Global: Bags three jobs worth RM63m

IPO: Tri-Mode seeks to raise RM26.4m in IPO

7-Eleven Malaysia: Unit proposes to acquire 60% of Cafe Decoral







The information and opinions in this report were prepared by AmInvestment Bank Bhd. The investments discussed or recommended in this report may not be suitable for all investors. This report has been prepared for information purposes only and is not an offer to sell or a solicitation to buy any securities. The directors and employees of AmInvestment Bank Bhd. Bhd may from time to time have a position in or with the securities mentioned herein. Members of the AmBank Group Bhd and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without notice.





















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