♦ Petronas net profit up 60.5%. Petronas’ 1QFY3/11 net profit grew a
significant 60% yoy on the back of higher revenue from higher oil prices and
cost-cutting measures. The upstream and gas and power divisions’ EBIT
earnings grew 54.1% and 27.9% respectively. However operationally all
divisions’ production were flattish. These results are unsurprising given that
2009 was a watershed year for the whole of the oil and gas sector.
Oil And Gas Sector Update : Petronas’ 1QFY11 Net Profit Up - 05/10/2010
Showing posts with label Oil and Gas. Show all posts
Showing posts with label Oil and Gas. Show all posts
Tuesday, October 5, 2010
Wednesday, September 1, 2010
Oil And Gas Sector Update : SOGT Finally Awarded?
SOGT finally awarded. It was reported in The Business Times that Korean
company Samsung Engineering had been awarded a US$770m (RM2.4bn) contract from Petronas Carigali (PCSB) to build an oil and gas terminal in Sabah which we believe is the long awaited SOGT project. The terminal would have the capacity to produce 300,000 barrels of oil and 1.25bn cubic feet of gas per day and is tentatively scheduled for completion by 2013. Samsung Engineering will lead the engineering, procurement, construction and commissioning (EPCC) works while its local partner is Naim Cendera S/B Engineering (NCSB), a Sarawak-based construction subsidiary of Naim
Holdings Bhd.
Oil And Gas Sector Update : SOGT Finally Awarded? - 01/09/2010
company Samsung Engineering had been awarded a US$770m (RM2.4bn) contract from Petronas Carigali (PCSB) to build an oil and gas terminal in Sabah which we believe is the long awaited SOGT project. The terminal would have the capacity to produce 300,000 barrels of oil and 1.25bn cubic feet of gas per day and is tentatively scheduled for completion by 2013. Samsung Engineering will lead the engineering, procurement, construction and commissioning (EPCC) works while its local partner is Naim Cendera S/B Engineering (NCSB), a Sarawak-based construction subsidiary of Naim
Holdings Bhd.
Oil And Gas Sector Update : SOGT Finally Awarded? - 01/09/2010
Monday, July 19, 2010
Corporate Highlights - 19/7/2010
♦ Oil & Gas
Sector Update : Getting Better?
♦ Berjaya Retail
New Listing : Offers Exposure To The Largest Convenience Store Chain In Malaysia
Corporate Highlights - 19/7/2010
Sector Update : Getting Better?
♦ Berjaya Retail
New Listing : Offers Exposure To The Largest Convenience Store Chain In Malaysia
Corporate Highlights - 19/7/2010
Oil And Gas Sector Update - Getting Better? - 19/07/2010
Positive news flow... We cannot deny that there has been a stream of good news for the oil & gas sector that suggests that upstream activity is turning more positive. However, we believe that investors should view all news flow in perspective given there are still underlying economic issues that could pull sentiment down.
Oil And Gas Sector Update - Getting Better? - 19/07/2010
Oil And Gas Sector Update - Getting Better? - 19/07/2010
RHB Equity 360° - 19 July 2010 (O&G, Berjaya Retail; Technical: Genting, UEM Land) - 19/7/2010
Sector Update
- We cannot deny that there has been a stream of good news for the oil & gas sector that suggests that upstream activity is turning more positive. However, we believe that investors should view all news flow in perspective given there are still underlying economic issues that could pull sentiment down.
- The positive news flow include: 1) higher rig counts for Southeast Asia in June: 2) successful capping of BP’s Macondo well which implies that there is less likelihood of Gulf of Mexico assets flooding this region; and 3) potential for more new listing proposals in the sector. Conditions are also ripe for more corporate restructurings within the sector given valuations have fallen back despite positive long-term outlook.
RHB Equity 360° - 19 July 2010 (O&G, Berjaya Retail; Technical: Genting, UEM Land) - 19/7/2010
- We cannot deny that there has been a stream of good news for the oil & gas sector that suggests that upstream activity is turning more positive. However, we believe that investors should view all news flow in perspective given there are still underlying economic issues that could pull sentiment down.
- The positive news flow include: 1) higher rig counts for Southeast Asia in June: 2) successful capping of BP’s Macondo well which implies that there is less likelihood of Gulf of Mexico assets flooding this region; and 3) potential for more new listing proposals in the sector. Conditions are also ripe for more corporate restructurings within the sector given valuations have fallen back despite positive long-term outlook.
RHB Equity 360° - 19 July 2010 (O&G, Berjaya Retail; Technical: Genting, UEM Land) - 19/7/2010
Friday, July 2, 2010
Oil And Gas : Petronas Reports Disappointing FY10 Results - 02/07/2010
Petronas reports lower FY10 revenue... Petronas’ FY03/10 revenue declined 18.8% yoy to US$62.5bn. This was mainly due to a drop in revenue from crude oil exploration & production (E&P), LNG sales, and sales of downstream refined petroleum products.
Oil And Gas : Petronas Reports Disappointing FY10 Results - 02/07/2010
Oil And Gas : Petronas Reports Disappointing FY10 Results - 02/07/2010
Corporate Highlights... - 02/07/2010
Berjaya Sports Toto
News Update : Struck By Pool Betting Duty Hike
Tanjung Plc
News Update : Gaming Hit By A Spate Of Negatives
Telecommunications
Sector News Update : MCMC Announces New Termination Rates
Oil And Gas
Sector Update : Petronas Reports Disappointing FY10 Results
Market Technical Reading
Daily Trading Strategy : The FBM KLCI Likely To Retest 1,300 Soon...
Corporate Highlights...-02/07/2010
News Update : Struck By Pool Betting Duty Hike
Tanjung Plc
News Update : Gaming Hit By A Spate Of Negatives
Telecommunications
Sector News Update : MCMC Announces New Termination Rates
Oil And Gas
Sector Update : Petronas Reports Disappointing FY10 Results
Market Technical Reading
Daily Trading Strategy : The FBM KLCI Likely To Retest 1,300 Soon...
Corporate Highlights...-02/07/2010
RHB Equity 360° (B-Toto/Tanjong, Telecom, Semicon, Oil & Gas; Technical: Sinotop) - 02/07/2010
Top Story : Gaming – Pool betting duties raised by 2%-points Neutral (down from OW)
B-Toto : Struck by pool betting duty hike Market Perform (down from OP)
News Update
- BToto announced that the Ministry of Finance has raised the pool betting duty (PBD) for all NFOs to 8% (from 6%), to be applicable retroactively from 1 June 2010. Recall the PBD is applicable on gross turnover, after deduction of gaming tax of 8%.
- We understand this move by the Government comes as a surprise to the NFO players, and as such, there is no intention to revise the prize pool downwards for the moment. However, we believe this would be a matter of discussion among the NFOs as they will have to agree upon the quantum of change, if any, and apply to the Government to change it. Assuming an unchanged prize pool and no changes to our sales volume assumptions, the impact of the 2%-pt hike to BToto’s net profit is -12% p.a..
- We think that an additional risk has emerged for the gaming sector as a whole, as this move by the Government, as well as the recent abortion of the sports betting licence deal, could potentially signify a turnaround in policy with regards to the gaming sector and could mean a further crackdown on industry players. This could also potentially spell an oncoming hike in casino gaming duties (now at 25%). We
estimate every 1%-pt hike in casino gaming tax would impact earnings by 2-3% p.a..
- We have revised down our forecasts by 12-12.1% for FY11-13 to take into account the PBD hike. We have also reduced our DPS forecasts accordingly, to maintain our 80-85% net payout ratio assumption, translating to lower net yields of 5.7-6.2% p.a. (from 6-7% previously). Post-earnings revision, we reduce our DCF-based fair value to RM4.45 (from 5.05). Due to the higher risks involved in the sector, we are downgrading our recommendation to a Market Perform (from Outperform).
RHB Equity 360° ( B-Toto/Tanjong, Telecom, Semicon, Oil & Gas; Technical: Sinotop) - 02/07/2010
B-Toto : Struck by pool betting duty hike Market Perform (down from OP)
News Update
- BToto announced that the Ministry of Finance has raised the pool betting duty (PBD) for all NFOs to 8% (from 6%), to be applicable retroactively from 1 June 2010. Recall the PBD is applicable on gross turnover, after deduction of gaming tax of 8%.
- We understand this move by the Government comes as a surprise to the NFO players, and as such, there is no intention to revise the prize pool downwards for the moment. However, we believe this would be a matter of discussion among the NFOs as they will have to agree upon the quantum of change, if any, and apply to the Government to change it. Assuming an unchanged prize pool and no changes to our sales volume assumptions, the impact of the 2%-pt hike to BToto’s net profit is -12% p.a..
- We think that an additional risk has emerged for the gaming sector as a whole, as this move by the Government, as well as the recent abortion of the sports betting licence deal, could potentially signify a turnaround in policy with regards to the gaming sector and could mean a further crackdown on industry players. This could also potentially spell an oncoming hike in casino gaming duties (now at 25%). We
estimate every 1%-pt hike in casino gaming tax would impact earnings by 2-3% p.a..
- We have revised down our forecasts by 12-12.1% for FY11-13 to take into account the PBD hike. We have also reduced our DPS forecasts accordingly, to maintain our 80-85% net payout ratio assumption, translating to lower net yields of 5.7-6.2% p.a. (from 6-7% previously). Post-earnings revision, we reduce our DCF-based fair value to RM4.45 (from 5.05). Due to the higher risks involved in the sector, we are downgrading our recommendation to a Market Perform (from Outperform).
RHB Equity 360° ( B-Toto/Tanjong, Telecom, Semicon, Oil & Gas; Technical: Sinotop) - 02/07/2010
Wednesday, June 23, 2010
Corporate Highlights - 23/6/2010
♦ Sunway Holdings
Visit Note : Earnings Visibility Improves Further
♦ Motor
Sector Update : May TIV Rises 15.6% YoY, 4.2% MoM
♦ Oil & Gas
Sector Update : SOGT Back In The Spotlight
Corporate Highlights - 23/6/2010
Visit Note : Earnings Visibility Improves Further
♦ Motor
Sector Update : May TIV Rises 15.6% YoY, 4.2% MoM
♦ Oil & Gas
Sector Update : SOGT Back In The Spotlight
Corporate Highlights - 23/6/2010
Oil And Gas - SOGT Back In The Spotlight - 23/6/2010
SOGT back in the spotlight. We highlight that the long-delayed Sabah Oil & Gas Terminal (SOGT) construction contract has reopened for submission of bids. The tender will close next week. Nine bidders have been shortlisted including Kencana and Dialog. The contract is expected to be awarded in Sep or Oct and will be for a period of two years, i.e. for completion in 2013.
Oil And Gas - SOGT Back In The Spotlight - 23/6/2010
Oil And Gas - SOGT Back In The Spotlight - 23/6/2010
RHB Equity 360° - 23 June 2010 (Sunway Holdings, Motor, O&G, Kencana, KFC, Proton; Technical: My E.G.)
Top Story : Sunway Holdings – Earnings visibility improves further
Visit Note:
The high construction margins recorded in 1QFY12/10 appear sustainable over the next few quarters.Property profits from Malaysia are likely to exceed our forecasts as Sunway rides on its seeminglyworkable "boutique development" strategy. The still relatively poor visibility for new public jobs will not derail Sunway's overall growth prospects as growth in non-construction profits remains robust. FY12/10-12 net profit forecasts are raised by 7-11% largely to reflect higher construction margins and stronger property profits from Malaysia. Fair value is raised by 39% from RM1.69 to RM2.35. Maintain Outperform.
RHB Equity 360° - 23 June 2010 (Sunway Holdings, Motor, O&G, Kencana, KFC, Proton; Technical: My E.G.)
Visit Note:
The high construction margins recorded in 1QFY12/10 appear sustainable over the next few quarters.Property profits from Malaysia are likely to exceed our forecasts as Sunway rides on its seeminglyworkable "boutique development" strategy. The still relatively poor visibility for new public jobs will not derail Sunway's overall growth prospects as growth in non-construction profits remains robust. FY12/10-12 net profit forecasts are raised by 7-11% largely to reflect higher construction margins and stronger property profits from Malaysia. Fair value is raised by 39% from RM1.69 to RM2.35. Maintain Outperform.
RHB Equity 360° - 23 June 2010 (Sunway Holdings, Motor, O&G, Kencana, KFC, Proton; Technical: My E.G.)
Thursday, June 10, 2010
Oil And Gas - Taking A More Cautious View - 10/6/2010
Oil price assumptions. The US EIA in its most recent Short-Term Energy Outlook report, has lowered its 2010 forecast for average WTI spot price to US$78.75/barrel from last month’s projection of US$82.18. While anticipation of stronger crude oil demand has previously helped to support oil price above US$65/barrel, we believe the near- to medium-term outlook has turned cautious. Demand for crude oil remains relatively lacklustre, while supply remains ample. Moreover, financial demand has dwindled due to credit tightening. In the absence of fundamental catalysts for crude oil prices to move higher, we have assumed prices will continue to hover at current levels of US$65-75 at least through the 2H10, before picking up slightly in 2011 to a range of US$75-85. In our view, longer-range projections are unreliable at this stage, although our expectations remain on the positive side.
Oil And Gas - Taking A More Cautious View - 10/6/2010
Oil And Gas - Taking A More Cautious View - 10/6/2010
RHB Equity 360° - 10 June 2010 (Market, O&G, HSL; Technical: Kumpulan Europlus)
We are nearly six months into 2010, and the focus is clearly back on risk. We believe investors’ confidence especially for exporters has been shaken by economic concerns in Europe and China, while incidents such as BP’s deepwater drilling accident in the Gulf of Mexico and Australia’s proposed resources tax will not help the outlook for resources sectors.
RHB Equity 360° - 10 June 2010 (Market, O&G, HSL; Technical: Kumpulan Europlus)
RHB Equity 360° - 10 June 2010 (Market, O&G, HSL; Technical: Kumpulan Europlus)
Friday, May 21, 2010
Corporate Highlights - 21/5/2010
♦ Market Momentum
Market Update : Pick And Choose
♦ Oil & Gas
Sector Update : Fabricators To Ride On Stronger Contract Flows In 2H10
♦ Axiata
Results Preview : Likely To Report Strong 1Q10 Performance
♦ CIMB Group
Results / Briefing Note : Off To A Good Start
♦ UMW Holdings
Results Note : Sustaining Strong Hold in 1Q10
♦ Kossan Rubber Industries
Results Note : No Surprises
Corporate Highlights - 21/5/2010
Market Update : Pick And Choose
♦ Oil & Gas
Sector Update : Fabricators To Ride On Stronger Contract Flows In 2H10
♦ Axiata
Results Preview : Likely To Report Strong 1Q10 Performance
♦ CIMB Group
Results / Briefing Note : Off To A Good Start
♦ UMW Holdings
Results Note : Sustaining Strong Hold in 1Q10
♦ Kossan Rubber Industries
Results Note : No Surprises
Corporate Highlights - 21/5/2010
Oil & Gas - Fabricators To Ride On Stronger Contract Flows In 2H10 - 21/5/2010
Development of deepwater fields to spur demand for maintenance and fabrication works. The focus on developing deepwater fields over the next six years, led by various oil majors’ participation in the exploration and development activities in Malaysian waters, would mean increasing demand for Malaysian maintenance and fabrication works. According to industry sources, Petronas expects to construct 60 new oil & gas platforms over the period of 2010-15, driven mainly by new deepwater fields coming onstream.
Oil & Gas - Fabricators To Ride On Stronger Contract Flows In 2H10 - 21/5/2010
Oil & Gas - Fabricators To Ride On Stronger Contract Flows In 2H10 - 21/5/2010
RHB Equity 360° - 21 May 2010 (Market, O&G, Axiata, Hai-O, CIMB, UMW, Kossan; Technical: AirAsia)
Market Update
- We do not see much good news in the near term and Malaysia appears caught in a downdraft of fear sparked off by global macroeconomic concerns. The risk of more downside is thus likely to be greater than the potential for upside.
- Clearly, losers from the strong ringgit have been among the hardest hit, including resources (plantations, oil & gas and timber), semiconductor, rubber gloves and steel. The GLCs and M&A plays could also slip further if confidence continues to falter.
- If the FBM KLCI falls as expected by RHBRI’s technical research to the next support level of 1,229, i.e. 6% lower than current levels, last seen in Oct 2009, 2010-2011 PERs would fall to 14.0x and 12.2x respectively, from 15.1x and 13.1x currently. We thus see value re-emerging.
- We believe the long-term picture is still intact with sustained economic and corporate earnings growth. We expect the Government to push forward with liberalisation policies and reduction of subsidies later. M&A activities are likely to continue in the industrial space, as well as banks and insurance. In addition, we
expect Malaysian corporates to look overseas for new growth opportunities, and especially given their pricing power have improved with the stronger ringgit.
- Under current volatile market conditions, we highlight that this is an opportunity to pick and choose stocks, especially those that have fallen hard in the last month such as Notion, Daibochi, Evergreen and Unisem.
RHB Equity 360° - 21 May 2010 (Market, O&G, Axiata, Hai-O, CIMB, UMW, Kossan; Technical: AirAsia)
- We do not see much good news in the near term and Malaysia appears caught in a downdraft of fear sparked off by global macroeconomic concerns. The risk of more downside is thus likely to be greater than the potential for upside.
- Clearly, losers from the strong ringgit have been among the hardest hit, including resources (plantations, oil & gas and timber), semiconductor, rubber gloves and steel. The GLCs and M&A plays could also slip further if confidence continues to falter.
- If the FBM KLCI falls as expected by RHBRI’s technical research to the next support level of 1,229, i.e. 6% lower than current levels, last seen in Oct 2009, 2010-2011 PERs would fall to 14.0x and 12.2x respectively, from 15.1x and 13.1x currently. We thus see value re-emerging.
- We believe the long-term picture is still intact with sustained economic and corporate earnings growth. We expect the Government to push forward with liberalisation policies and reduction of subsidies later. M&A activities are likely to continue in the industrial space, as well as banks and insurance. In addition, we
expect Malaysian corporates to look overseas for new growth opportunities, and especially given their pricing power have improved with the stronger ringgit.
- Under current volatile market conditions, we highlight that this is an opportunity to pick and choose stocks, especially those that have fallen hard in the last month such as Notion, Daibochi, Evergreen and Unisem.
RHB Equity 360° - 21 May 2010 (Market, O&G, Axiata, Hai-O, CIMB, UMW, Kossan; Technical: AirAsia)
Monday, May 3, 2010
Oil & Gas - Upturn In FPSO Market
Background. A Floating Production, Storage and Offloading system (FPSO) consists of a large moored vessel, which includes processing facilities and storage capacity. Most FPSOs are converted oil tankers and are generally suitable for benign operating environment. Currently, we note that oil majors would either lease/own the vessels themselves or charter from third-party vessel owners.
Oil & Gas - Upturn In FPSO Market
Oil & Gas - Upturn In FPSO Market
RHB Equity 360° - 3 May 2010 (O&G, Banks, Notion Vtec, MAS; Technical: Maybank, Genting)
Top Story : Oil & Gas – Upturn in FPSO market Overweight
Sector Update
♦ According to Fred Olsen (a Norwegian floater specialist), the marked recovery is a continuation of the pickup in activity since 4Q 2009 which saw the award of seven contracts followed by another four contracts in Jan-Feb 2010. Going forward, we believe the market for FPSO is on track for a strong rebound driven mainly by: 1) stronger E&P spending beginning 2H 2010; and 2) increase in deepwater E&P activities.
♦ We highlight the potential shortages for the ‘High Case’ forecast of around 25-30 vessels p.a. in 2010-11, in the event of stronger-than-expected demand stemming from increased E&P activity in deepwater and ultradeepwater fields (Brazil, Africa, Malaysia, Vietnam and Gulf of Mexico). Hence, we expect FPSO charter rates to rise significantly over the next two years, driven by strong demand amidst a shortage of supply in the market.
RHB Equity 360° - 3 May 2010 (O&G, Banks, Notion Vtec, MAS; Technical: Maybank, Genting)
Sector Update
♦ According to Fred Olsen (a Norwegian floater specialist), the marked recovery is a continuation of the pickup in activity since 4Q 2009 which saw the award of seven contracts followed by another four contracts in Jan-Feb 2010. Going forward, we believe the market for FPSO is on track for a strong rebound driven mainly by: 1) stronger E&P spending beginning 2H 2010; and 2) increase in deepwater E&P activities.
♦ We highlight the potential shortages for the ‘High Case’ forecast of around 25-30 vessels p.a. in 2010-11, in the event of stronger-than-expected demand stemming from increased E&P activity in deepwater and ultradeepwater fields (Brazil, Africa, Malaysia, Vietnam and Gulf of Mexico). Hence, we expect FPSO charter rates to rise significantly over the next two years, driven by strong demand amidst a shortage of supply in the market.
RHB Equity 360° - 3 May 2010 (O&G, Banks, Notion Vtec, MAS; Technical: Maybank, Genting)
Friday, March 12, 2010
Corporate Highlights - 12/03/2010
♦ Fajarbaru Builder Group
Visit Note : Eyeing RM400m PFI Teaching-Hospital In Kuantan
♦ Oil & Gas
Sector Update : Stronger Contract Flows In 2H 2010
♦ Axiata Group
News Update : Raising XL’s Free Float
♦ Berjaya Sports Toto
News Update : New RM8.88m Minimum Jackpot Game To Start 18 March
♦ Tan Chong Motor
News Update : Signed Nissan’s Distribution Rights For Cambodia
♦ Market Technical Reading
Daily Trading Strategy : In Cautious Mode!
Corporate Highlights -12/03/2010
Visit Note : Eyeing RM400m PFI Teaching-Hospital In Kuantan
♦ Oil & Gas
Sector Update : Stronger Contract Flows In 2H 2010
♦ Axiata Group
News Update : Raising XL’s Free Float
♦ Berjaya Sports Toto
News Update : New RM8.88m Minimum Jackpot Game To Start 18 March
♦ Tan Chong Motor
News Update : Signed Nissan’s Distribution Rights For Cambodia
♦ Market Technical Reading
Daily Trading Strategy : In Cautious Mode!
Corporate Highlights -12/03/2010
Oil & Gas : Stronger Contract Flows In 2H 2010 -12/03/2010
Spread between spot and futures to narrow. We note that crude oil futures curve has flattened with the 9 March 2010 spread between spot delivery and one-month futures narrowed to its 18-month low of 40 cents (vs. US$2.35 on 30 Dec 2009). The potential backwardation (i.e. spot price rising above longer-dated futures) suggests that oil demand would likely catch up with supply going forward, thus capping downside risk to crude oil price over the medium term.
Oil & Gas : Stronger Contract Flows In 2H 2010
Oil & Gas : Stronger Contract Flows In 2H 2010