- SapuraKencana Petroleum has been awarded three contracts worth a total of US$215 million (RM889 million).
- The first contract is related to India’s state-owned Oil and Natural Gas Corporation’s B127 Cluster Pipeline RTR Project. The scope of work involves engineering, procurement, construction, installation and commissioning of 11 pipeline systems in B127 and surrounding Mumbai High fields located off the west coast of India. The contract is for 20 months.
- The second contract is for the provision of the tender assist drilling rig SKD Pelaut for Brunei Shell Petroleum. The contract is for period of two years with options to extend for an additional two years.
- The last contract was awarded by Petronas Carigali involving underwater maintenance services for Sepat mobile offshore production unit for two months.
Significance: The new contracts are expected to contribute positively towards the group’s earnings for FY17 and provides much potential for the extensions of contracts. In an earlier report on the group’s 1H17 results, Hong Leong Investment Bank Research views the first-half of the year within its expectation, while adding that 2H17 performance is seen to be weaker in view of stacking of more rigs. The research house has upgraded SapuraKencana Petroleum to a ‘Hold’ call with a higher target price of RM1.57.