Perisai hits all-time low again on PN17 status
> Earnings outlook for O&G firm also expected to stay weak due to its idling assets, says research house
PETALING JAYA: Perisai Petroleum Teknologi Bhd shares hit an all-time low of 6.5 sen after falling into the PN17 status due to the S$125 million (RM377.3 million) default payment.
At market close, the counter was down by half a sen or 6.67% to 7 sen on some 125.67 million shares done, the most actively traded stock of the day.
Kenanga Research expects further selling pressure on Perisai following its declaration of going into the PN17 status with no near term re-rating catalysts.
Its earnings outlook is also expected to stay weak due to its idling assets, according to the research house.
“Perisai’s jack-up rig contract is expiring in 2017 while its FPSO (floating production storage offloading) Perisai Kamelia’s contract is ending on May 31, 2017 with 12 monthly extension options,” it noted.
The company is still trying to negotiate with its noteholders on alternative solutions with the new financing. Should the debt restructuring process fail, the noteholders reserve the right to take legal actions against Perisai.
In view of the higher insolvency risk, Kenanga Research is keeping its “underperform” rating on Perisai with a lower target price of 5 sen.
“Note that our target price could be lower if Perisai makes further impairment on its idling asset at the end of the year,” it said.
However, Kenanga Research said upside risks to its call are new contracts for its jack-up rig, renewal of its FPSO contract or redeployment to other fields as well as successful restructuring of its debt portfolio.