Stocks To Watch - SapuraKencana, Uzma, AQRS, CIMB, Naim, AirAsia, Datasonic

KUALA LUMPUR (April 1): Based on news flow and corporate announcements today, companies that may be in focus tomorrow  include the following:

SapuraKencana Petroleum Bhd announced that its wholly-owned drilling subsidiaries have been awarded one new contract and three contract extensions.

SapuraKencana Drilling Pte Ltd, a unit in Singapore, has been awarded a contract by Total E&P Congo, Republic of Congo, for the provision of its Semi-Tender Assist Drilling Rig “SKD Berani” for a period of one year with an option for an extension of one year.

The contract will commence in April 2014 until March 2015 and is valued at US$108 million.

SapuraKencana Drilling Sdn Bhd, a company in Brunei, has accepted an extension to its contract with Brunei Shell Petroleum Company Sdn Bhd for the provision of offshore drilling rig and services.

This contract extension is for a period of two years commencing April 2015 until March 2017, and is valued at US$92 million.

In addition, SapuraKencana Drilling Asia Limited, a company incorporated in Hong Kong, has accepted an extension to its contract with Cabinda Gulf Oil Company Limited for the provision of Tender Assist Drilling Rig “SKD Setia”.

This contract extension is for two years commencing August 2014 until July 2016 and is expected to increase the total contract value by US$164 million.

Also, SKD Asia has also accepted an extension to its contract with Chevron Thailand Exploration and Production Limited for the provision of the Tender Assist Drilling Rig “SKD T-12”.

This contract extension is for a period of two years commencing March 2014 until end of March 2016 and is expected to increase the total contract value by US$90 million.

Uzma Bhd has signed a small field risk service contract (RSC) with Petroliam Nasional Bhd, where total cost is estimated to be RM326 million (US$100 million).

The (RSC) stipulates the development and production of hydrocarbon from the Tanjong Bram Field, located offshore Lutong, Sarawak.

Uzma said the development project is expected to complete next year with first oil expected in the same year.

The oil & gas service provider said a contractor group had on Mar 27, 2014, signed the RSC with Petronas.

The contractor group consists of its subsidiary, Uzma Energy Venture (Sarawak) Sdn Bhd (UEVS) and EQ Petroleum Developments Malaysia Sdn Bhd (EQ).

Uzma said the RSC shall be for a period of nine years.

Uzma said fundings for the RSC will be generated from its internal funds, bank borrowings and/or proceeds from an equity/debt fund raising exercise.

“The RSC is expected to contribute positively to the future earnings of the group,” said Uzma.

Gabungan AQRS Bhd’s unit has secured a civil works contract worth RM42.6 million from RSP Architects Sdn Bhd, the architect for Tropicana Metropark Sdn Bhd.

The property developer and construction & engineering firm said its wholly-owned unit Gabungan Strategik Sdn Bhd had yesterday accepted a letter of award dated Mar 24, 2014 from RSP Architects for the contract.

The contract covers the earthworks, piling works, substructure works, reinforced concrete frame, upper floor slabs and staircases.

Gabungan AQRS said the contract will commence on Apr 7, 2014 and is estimated to be completed by Aug 6, 2015.

“The contract award is expected to contribute positively to the future earnings and net assets per share of the group and its subsidiaries for the financial years ending Dec 31, 2014 and Dec 31, 2015,” said Gabungan AQRS.

CIMB Group Holdings Bhd has acted as the Joint Global Coordinator and Joint Lead Manager for the three-year, CNH1.0 billion Dim Sum bond issued in Hong Kong by China Development Bank Corporation (CDB), said a statement by CIMB today.

The coupon rate for the bond is 3.35%, added the Malaysian banking institution.

CDB is a wholly-owned financial institution of the Government of China and the largest RMB bond issuer in Hong Kong.

“This transaction marks CDB’s offshore RMB (or CNH) bond issuance with predominant ASEAN investor base,” said CIMB.

(When the RMB is traded offshore, mostly in Hong Kong, its rate is referred to as CNH. This rate could be different from RMB’s rate traded in mainland China).

Naim Holdings Bhd has fully redeemed its debt papers in RM500 million IMTN Programme (2010/2025) and RM100 million ICP Programme (2010/2017) ahead of maturity.

In a statement, RAM Ratings said it has received confirmation that Naim Holdings Berhad fully redeemed its RM500 million IMTN Programme (2010/2025) and RM100 million ICP Programme (2010/2017) on 31 March 2014.

AirAsia Bhd, referring to an official report today that the existing low-cost carrier terminal (LCCT) will close on 9th May 2014, said all AirAsia and AirAsia X operations will still be based at the current LCCT even after 9th May as there are “a number of unresolved pressing issues that still need to be addressed”.

Transport Ministry deputy minister Datuk Aziz Kaprawi said today the closure of LCCT on May 9 was to facilitate the opening of klia2.

"They (AirAsia) would have to move as LCCT is shutting on May 9 and all operations will move," he added.

But AirAsia said: “Although AirAsia is prepared to move to klia2, the transfer will only be carried out after all the issues are addressed.”

“The recent Ikram Premier Consultings’ (Ikram) findings on the readiness of klia2 has revealed that there are depressions on the taxiway / apron and runway, which will necessitate periodic remedial measures to be undertaken on relevant areas.

“This will prove to be operationally disruptive to a hub airline such as AirAsia Group which has about 400 aircraft movements in a day and at least 70 aircraft in its fleet in LCCT. Last year alone the group carried 22 million passengers via LCCT.”

Datasonic Group Bhd may be affected by a cautionary note from Bursa Malaysia Securities Bhd, which has advised investors to exercise caution and make informed decisions in the trading of Datasonic Group Bhd's shares and call warrants.

This follows the company's response to Bursa's unusual market activity (UMA) query on Feb 18, Bernama reported.

Bursa Malaysia in a statement today said Datasonic Group confirmed that it was unaware of any corporate development or explanation that could give rise to unusual trading activities in its securities.

"Bursa Malaysia will not hesitate to take appropriate regulatory action to ensure fair and orderly trading of Datasonic's shares and call warrants," it said.

On Feb 18, Bursa Malaysia issued the UMA query to Datasonic over the sharp rise in the company's share price. Datasonic responded on the same day.

At close today, Datasonic's share price rose 38 sen or 8.5 per cent to RM4.85 with 8.16 million shares changing hands.

Written by Ho Wah Foon of theedgemalaysia.com