KUALA LUMPUR: KENCANA PETROLEUM BHD [] shares rose in early trade on Monday, June 27 after its earnings rose 81% to RM56.42 million in the third quarter ended April 30, 2011 from RM31.17 million a year ago underpinned by the progress achieved for the contracts.
At 9.10am, Kencana added three sen to RM2.82 with 28,600 shares traded.
Revenue rose 34.7% to RM377.83 million from RM280.37 million. Earnings per share were 3.08 sen versus 1.92 sen a year ago.
When compared with a year ago, where revenue and pre-tax profit came in at RM280.37 million and RM36.5 million, this was an improvement of 35% and 91% respectively in the current quarter.
OSK Research in a note June 27 said Kencana's 9MFY11 results were within estimates.
The research house said that overall, the 3QFY11 numbers were better, contributed by the full 3-month contribution from MKR-1, recognition of more fabrication works secured since April 2010, better yard utilisation, lower expenses incurred, better cost management and fabrication of more higher margin product mix.
'Kencana continue to remain as one of the safer one within its sector and this was reflected in its share price.
'Maintain Buy with an unchanged fair value of RM3.17. This stock remains as our top picks in the O&G sector,' said OSK Research.
At 9.10am, Kencana added three sen to RM2.82 with 28,600 shares traded.
Revenue rose 34.7% to RM377.83 million from RM280.37 million. Earnings per share were 3.08 sen versus 1.92 sen a year ago.
When compared with a year ago, where revenue and pre-tax profit came in at RM280.37 million and RM36.5 million, this was an improvement of 35% and 91% respectively in the current quarter.
OSK Research in a note June 27 said Kencana's 9MFY11 results were within estimates.
The research house said that overall, the 3QFY11 numbers were better, contributed by the full 3-month contribution from MKR-1, recognition of more fabrication works secured since April 2010, better yard utilisation, lower expenses incurred, better cost management and fabrication of more higher margin product mix.
'Kencana continue to remain as one of the safer one within its sector and this was reflected in its share price.
'Maintain Buy with an unchanged fair value of RM3.17. This stock remains as our top picks in the O&G sector,' said OSK Research.
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