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

The Sun (Malaysia) - - SUNBIZ -

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.

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