SapuraKencana Petroleum continues to replenish order book

KUALA LUMPUR: SapuraKencana Petroleum Bhd (SapuraKencana) will continue looking for new jobs this year after winning its first contract for financial year 2018 (FY18) ending January 2018.

The research arm of JF Apex Securities Bhd (JF Apex Research) in a report said the group continues eyeing for US$7.5billion worth of new contracts globally especially pipeline, maintenance contracts and engineering, procurement, construction, installation and commissioning (EPCIC) contracts.

The research firm projected that included the amount of the latest contract wins, the group’s orderbook is estimated to be around RM17 billion, out of which RM4.9 billion will be recognised in the group’s accounts in FY18 and RM10.3 billion in FY19 and onwards.

Additionally, AmInvestment Bank Bhd (AmInvestment Bank) in another report said the oil and gas company is hopeful for further wins with tender prospects worth over US$7 billion or approximately RM31 billion.

At the same time, the research arm of Hong Leong Investment Bank (HLIB Research) expects more contracts flows to come in for SapuraKencana on the expectation of more stable oil prices in 2017.

Likewise, the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) believed that the group would be able to weather the tough operating environment in the O&G industry whilst seeking for more opportunities.

The research firm opined that the company’s fundamentals remained strong and has been improving quarter-on-quarter.

Meanwhile, SapuraKencana in a filing to Bursa Malaysia on March 2 said the group through its subsidiaries of companies have won four contracts worth a total of approximately RM433.6 million.

Elaborating further, the O&G company revealed that the first contract was the umbrella contract of the Pan Malaysia Transport and Installation (T&I) of offshore facilities.