Thursday, December 29, 2011

Alam Maritim edges up on contract from S'wak Shell

KUALA LUMPUR (Dec 29): ALAM MARITIM RESOURCES BHD [] shares edged up on Thursday after its unit Alam Maritim (M) Sdn Bhd received a letter of award from Sarawak Shell Bhd for the modules offshore transportation and installation contract valued at RM29.80 million.

At 9.15am, Alam added 1.5 sen to 75.5 sen with 142,100 shares done.

The nine-month contract started the current fourth quarter and the expected date of completion was May 2012.

Affin Investment Bank Bhd Research said in a note Dec 29 said it was positive on the contract win, which was inline with management's intention to move up the O&G value chain into the transportation and installation segment.

However, the research house maintained its FY11-13 net earnings forecasts as it had imputed RM50 million of transportation and installation contract win for FY11.

'Maintain ADD on Alam Maritim with an unchanged TP of RM0.87, based on 12x CY12 earnings.

'Key re-rating catalysts are winning of long-term OSV charter contracts, award of SOGT pipelaying work and/or other major offshore installation & CONSTRUCTION [] (OIC) contracts,' it said.


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