Stock With Momentum: Petra Energy

This article first appeared in The Edge Financial Daily, on March 5, 2019.
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Petra Energy Bhd (-ve)
TRADING of shares in Petra Energy Bhd (fundamental: 0.95/3, valuation: 0.9/3) triggered our stocks with momentum algorithm yesterday for the fourth time in less than 10 weeks. The stock closed 23.5 sen or nearly 26% higher at RM1.14 yesterday, with 11.52 million shares done — much higher than the counter’s 200-day average trading volume of 208,809 shares.

Petra Energy returned to the black in the fourth quarter ended Dec 31, 2018 (4QFY18) with a net profit of RM20.88 million compared to a net loss of RM46.50 million in the previous corresponding quarter, which it attributed to an increase in activities in the service segment. Quarterly revenue ballooned 62% to RM191.83 million from RM118.44 million in the previous year.

For the full year, Petra Energy’s net loss narrowed more than half to RM21 million from a net loss of RM46.03 million in the previous year. Revenue inched up 1.6% to RM467.42 million from RM460.23 million. Petra Energy is currently trading at 1.11 times its net book value.