Thursday, September 22, 2011

SapuraCrest edges up on higher 2Q earnings

KUALA LUMPUR: SAPURACREST PETROLEUM BHD []'s shares rose on Thursday, Sept 22 after its earnings rose 46.9% to RM78.23 million in the second quarter ended July 31 from RM53.24 million a year.

At 9.15am, SapuraCrest gained three sen to RM3.95 with 1,900 shares traded.

Revenue, however, fell 22.1% to RM699.39 million from RM898.11 million.

For the first half, net profit rose 44.8% to RM150.57 million from RM103.93 million but revenue declined 20.2% to RM1.25 billion from RM1.568 billion.

MIDF Research upgraded SapuraCrest to a Buy from Neutral previously with an unchanged target price of RM4.60, and said the expected total return was now more than 15% after recent share price retracement.

'Our Buy call is premised on SapCrest's intact fundamentals and long-term prospects, strong FY12 estimated earnings growth of +21.2% supported by sizeable order book and Petronas' commitment on its capex despite the fact that short-term jittery market outlook might retain buying interest,' it said in a note Sept 22.

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