Scomi Energy: Scomi Energy Services (SES) recorded its first post restructuring quarterly result which is largely inline with our expectation as core net of RM23.5m made up 21% of our full year estimate. Given its current orderbook size of RM5.1bn, the company’s primary focus now is to deliver its services to its customers. In terms of further orderbook upside at this juncture, we expect market for long term and sizeable contract for drilling fluid/waste management (such as the one valued at USD690m secured from Petronas early this year) is rather limited. That said, we see pockets of opportunities for some smaller size projects such as E&P activities remain on the high side in the countries where SES is operating. While coal transportation remains as a weak spot for the company, its OSV business has given support to the overall positive Marine Services performance. We made no changes to our estimate and retain our Neutral call at target price of RM0.73 based on 15.5x PER on FY14 EPS of 4.7sen. Full report is available at BISonline.my upon signing up.
Posted on: Mon, 26 Aug 2013 01:38:53 +0000
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