KUALA LUMPUR (June 22): Oil and gas services provider Sapura Energy Bhd rose 5% in active trade this morning after it bagged nine new contracts worth approximately RM1.8 billion, bringing its accumulative contract wins to-date to RM4.5 billion for the group.

At 9.05am, Sapura Energy rose 3 sen to 63 sen with 18.48 million shares done.

The combined value of the contracts represent a three-fold jump or an increase of nearly 250% compared to the value achieved in the corresponding period of the previous year, between February to June 2017, the group said.

Through its wholly-owned subsidiaries, the group will be executing a series of diverse jobs across the upstream value chain in Malaysia, Australia, India and Mexico.

Meanwhile, RHB Research Institute Sdn Bhd upgraded Sapura Energy Bhd to ‘Buy” at 60 sen with n unchanged target price of 82 sen after Sapura Energy announced RM1.8 billion worth of contract wins that comprise a mixture of engineering, procurement, construction and commissioning, and drilling jobs (mainly overseas).

In a note today, the research house said while the job win is neutral for house forecasted numbers – being within its orderbook replenishment assumption – it is a positive for Sapura Energy, as it points to the recovery of the global offshore market.

“This takes its year-to-date contracts won to RM4.2 billion, at 52.5% of our full-year assumption. We maintain our earnings estimates.

“The recent sell-down is unjustified, given the company’s significant exposure to overseas markets and its huge upstream oil-producing asset potential in the long term,” it said.