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Reports Malaysia

Malaysia stock market and companies daily report (June 09, 2014)

June 9, 2014, Monday, 06:06 GMT | 01:06 EST | 10:36 IST | 13:06 SGT
Contributed by Shares Investment

Yinson’s Oil And Gas Foray Bears Fruit

- Leading international independent offshore production and support services provider, Yinson Holdings has announced that its latest floating production storage and offloading vessel (FPSO), PTSC Lam Son, has produced its first oil ahead of its original schedule.

- The Lam Son project is a 49:51 joint venture between Yinson and PetroVietnam Technical Services Corporation for the provision and chartering of the FPSO with a contract value of US$737.3 million (RM2.4 million) for seven years and an extension option of three years.

- The company had expanded its business into the oil and gas industry and has a successful transformation from a logistics company.

Significance: Yinson expects the activities of Lam Son to start contributing positively to its profits from FY15, ending 31 January 2015. It had also announced a rights issue to raise RM568 million for expansion activities.

HLIB Upgrades Scomi Energy From “Hold” To “Buy”

- Scomi Energy and its Australian partner Octanex are reportedly nearing the award of their first risk service contract (RSC) for the Ophir oilfield.

- Hong Leong Investment Bank Research (HLIB) estimates that with 5 million barrel of recoverable oil and its 30 percent stake, it estimates the RSC contract to contribute RM40 million to RM50 million to the company’s bottomline, which represents about 49 percent to 62 percent of FY14 profit after tax.

- HLIB raised earnings forecast for FY16 by 13 percent after factoring in improved margin on the oilfield services due to prudent cost management and higher mix of better margin product (grapheme drilling fluids). This is exclusive of earnings from the RSC contract.

Significance: HLIB has upgraded Scomi Energy from “Hold” to “Buy” with target price raised to RM1.12. Should Scomi Energy wins the RSC for Ophir field, the target price will be raised from RM1.12 to RM1.28.

GD Express Carrier To Foray Into Indonesia

- GD Express Carrier is planning to enter the Indonesian market by year-end, marking its pioneer foray outside of Malaysia and Singapore.

- The company is keen to establish its footprint in the world’s fourth largest country as it will pave the way for a full scale operation in the near term, given the ample opportunities in ASEAN.

- GD Express Carrier, which is also 26 percent owned by Singapore Post, has around 40,000 small and mid-sized businesses among its clients.

Significance: GD Express Carrier’s move into Indonesia will help the company seize a growing market pie of the sector in view of the upcoming Asean Economic Community and tap into Indonesia’s large market which has gained political stability.

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