‘Outperform’ call on Sapura Energy new contracts

Kenanga Research has maintained an ‘Outperform’ rating on Sapura Energy Bhd with an unchanged price target of RM2.24 per share, after the company secured four new contracts.

“We are positive on the four contracts secured, which reaffirms Sapura Energy’s competitiveness.

“However, we made no changes to our earnings fore- cast as it is within our orderbook replenishment, as well as vessels utilisation assumptions,” Kenanga Research said in a note.

Sapura Energy yesterday announced that its direct and indirect wholly owned subsidiaries have been awarded contracts with a combined value of US$206 million (RM879 million), varying up to 21 months and spanning until the company’s financial year 2020 earnings.

Sapura Energy’s share price at Bursa Malaysia advanced five sen to RM1.87 as at 11.50am last Friday with 2.29 million shares traded. — Bernama