Bullish report on 2014 Malaysian offshore prospects

Kuala Lumpur: The research arm of Kenanga Investment Bank (Kenanga Research) is bullish on offshore developments in and Malaysia this year.

Local offshore operators were awarded three times as many contracts last year over 2012, leading to soaring share prices, Kenanga Research said in a recent report.

This year is likely to see big growth too. The market is still short of offshore supply vessels (OSVs), such as anchor-handling-tug-supply (AHTS), platform supply (PSVs), and accommodation (barge and boat) vessels and jack-up rigs, Kenanga Research said.

“Whilst the large-cap names like UMW Oil and Gas Corporation Bhd in the drilling segment and Bumi Armada Bhd for the OSV space will remain favourites, we believe that the relative trading price earnings ratio (PER) discounts will spearhead a re-rating for smaller-cap names like peers such as Coastal Contracts Bhd (Coastal Contracts, Alam Maritim Resources Bhd (Alam Maritim) and Perdana Petroleum Bhd (Perdana Petroleum),” it projected.  [08/01/14]

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