Alam Maritim gets RM32m contracts to provide vessels

KUALA LUMPUR: ALAM MARITIM RESOURCES BHD [] has secured two contracts to provide vessels with a total value of RM32 million.

It said on Thursday, Sept 29 its unit Alam Maritim (M) Sdn Bhd had received letters of contract extension from''Petronas Carigali Sdn Bhd to provide two anchor handling tug supply (AHTS) vessels valued at RM23.32 million.

Its unit also received a letter of award from Dayang Enterprise Sdn Bhd to provide'' one workboat valued at RM8.68 million

'The contract extension is for a period of one year each. One of the AHTS vessels under the contract extension has commenced its contract in August 2011, whereas the contract extension for the other AHTS vessel shall take effect in December 2011,' it said.

Alam Maritim said the RM32 million contracts were expected to positively contribute to the earnings and net assets for the financial year ending Dec 31, 2011 and beyond.

Alam Maritim edges up in early trade

KUALA LUMPUR: ALAM MARITIM RESOURCES BHD [] share rose in early trade on Wednesday, Sept 21 after its unit secured a RM22.10 million contract to supply a vessel to a local oil and gas company.

At 9.10am, Alam gained 1.5 sen to 80.5 sen with 2,000 shares done.

The company said on Sept 20 that the contract was for 28 months and it started on July 24.

ECM Libra Research in a note Sept 21 maintained its Buy call on Alam Maritim, and said that there had been a significant pickup in demand for offshore support vessel in Malaysia with increased drilling activity and redevelopment projects, adding that Alam was the obvious beneficiary.

'Our target price of RM1.11 is based on mid CY12 P/E of 11x, a historical average valuation.

'The group now has a solid orderbook of roughly RM700 million that will take them back to the black in 2H11 and turn in solid profits in FY12,' it said.

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Alam advances in early trade

KUALA LUMPUR: ALAM MARITIM RESOURCES BHD [] shares rose on Wednesday, April 20 as CIMB Research said the company's plan to venture into pipe installation was coming to fruition, and upgraded the stock to Buy from Sell previously.

At 9.15am, Alam was up nine sen to RM1.14 with 3.99 million shares done.

The research house said that Alam's 50:50 JV with Swiber was set to clinch a US$50 million to US$60 million contract relating to Petronas's Sabah oil & gas terminal (SOGT) and was teaming up with the Sabah state agency Yayasan Sabah on O&G related works.

CIMB Research said imputing the contract in its FY11 forecasts and assuming the award of similar-sized contracts in FY12-13, it raised its EPS by 16.9% for FY11, 13.3% for FY12 and 11.1% for FY13.

'Given Alam's improving prospects, we now value it at a 20% discount to our 14.5x target market P/E instead of 30%, which, together with our earnings upgrades, increases our target price from RM1.03 to RM1.40.

'We upgrade Alam from Sell to Buy, with the potential catalysts being 1) the announcement of the SOGT contract, and 2) more pipe installation ventures,' it said.