Wednesday, November 6, 2013

Perisai - MOPU

It was reported that Perisai has partnered with Takisman Energy Inc and is understood to have pulled ahead of at least two other competing bids to secure the production sharing contract for Block PM-9 which is expected to be awarded before the end of 2013.

The news is positive if the tender is secured as Perisai will be able to deploy the currently (Nov 2013) idle Rubicome mobile offshore production unit to revive this matured field.

If the MOPU starts work earlier or there are profit sharing terms to the PSC, there could be upside to its earnings.

The Rubicone MOPU is a very significant contributor to Perisai’s earnings (40% of FY2012 earnings).

Perisai is also pending a new charter for the Enterprise 3 barge.

In the most extreme cases, if Perisai does not secure a charter for the whole of FY2014, it could mean another estimated 15% cut to its current earnings.

Securing a long term job for the Rubicone will provide much needed earnings visibility to Perisai’s earnings going forward, at rm40 million to rm50 million in recurring profit. Furthermore, depending on the terms of the PSC, Perisai may also be able to receive remuneration from the field production.

To recap, it was reported earlier that have allowed for a break in charter for the MOPU for a period of nine months, starting Oct 2013 to June 2014.

If secured by end FY2013, it could take up to three to six months to get the production at the field back on track, and the Rubicone back in production.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.