SapuraCrest: Buy, target price RM3.09

Kenanga Research remains positive of SapuraCrest Petroleum Bhd (8575) given its locked-in prospects. 

  The company is in a strong position for the upcoming domestic developments in deepwater fields and the Enhanced Oil Recovery (EOR) project.

SapuraCrest's recent 49 per cent joint venture with Qatar's Al-Rayan Investment will open new opportunities in the Middle East.

The firm's recent renewal of drilling contracts for T6 and T10 rigs signals the good times ahead especially with Devil Creek Project (Australia) and the Mumbai High North Field project scheduled for commencement later this year .

SapuraCrest's order book remains at RM8.1 billion and will last it at least two years based on their burn rate of RM3.5 billion a year.