KUALA LUMPUR: Shares of KENCANA PETROLEUM BHD [] and SAPURACREST PETROLEUM BHD [] rose in afternoon trade on Monday, Jan 31, amid a broader cautious market after announcing they had secured part of a Petroliam Nasional Bhd (Petronas) project.
At 4.41pm, Kencana rose two sen to RM2.57 with 12.94 million shares done. SapuraCrest added six sen to RM3.68 with 3.76 million units transacted.
OSK Research said it was keeping its FY11-12 earnings forecasts for Kencana unchanged for now.
'As for the revenue arising from the fabrication of O&G structures for the Berantai oilfield, we had earlier included some orderbook replenishment and hence are not tweaking our earnings for now. Hence, our target price on the stock remains unchanged at RM3.05, based on the existing PER of 23x FY12 EPS,' said the research house.
SapuraCrest, Kencana and Petrofac Ltd Group announced on Monday, they had secured a Petronas contract for an oil and gas project with an estimated development cost of US$800 million (RM1.96 billion).
The project involved the Berantai oil and gas field, about 150km off Terengganu.
Under the joint operating agreement (JOA) with Petronas, Sapura Energy and Kencana Energy will have 25% interest each while PED will hold a 50% stake.
SapuraCrest and Kencana said that based on the estimated development cost was US$800 million, their subsidiaries' respective contributions to the development was US$200 million each.
At 4.41pm, Kencana rose two sen to RM2.57 with 12.94 million shares done. SapuraCrest added six sen to RM3.68 with 3.76 million units transacted.
OSK Research said it was keeping its FY11-12 earnings forecasts for Kencana unchanged for now.
'As for the revenue arising from the fabrication of O&G structures for the Berantai oilfield, we had earlier included some orderbook replenishment and hence are not tweaking our earnings for now. Hence, our target price on the stock remains unchanged at RM3.05, based on the existing PER of 23x FY12 EPS,' said the research house.
SapuraCrest, Kencana and Petrofac Ltd Group announced on Monday, they had secured a Petronas contract for an oil and gas project with an estimated development cost of US$800 million (RM1.96 billion).
The project involved the Berantai oil and gas field, about 150km off Terengganu.
Under the joint operating agreement (JOA) with Petronas, Sapura Energy and Kencana Energy will have 25% interest each while PED will hold a 50% stake.
SapuraCrest and Kencana said that based on the estimated development cost was US$800 million, their subsidiaries' respective contributions to the development was US$200 million each.
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