Reflections on Volume

Big volume without further upside equals distribution
Big volume without further downside equals accumulation

Volume tends to peak at turning points
Volume often precedes price movement
Volume is a relative study

Wednesday, June 30, 2010

Kencana's Subsidiary Gets Work Order For Offshore Services

KUALA LUMPUR, June 29 (Bernama) -- Kencana Petroleum Bhd's wholly-owned subsidiary Kencana HL Sdn Bhd has received a work order from Petronas Carigali Sdn Bhd to provide hook-up and commissioning services for the Kanowit CPP Platform located offshore Sabah.

In a filing to Bursa Malaysia Tuesday, the group said the value of the work order is for the lump sum of RM33.9 million and it is expected to be fully completed by November this year.

The work order formed part of the contract from Petronas Carigali for hook-up and commissioning services for its facilities from 2007 to 2010.

The work order is expected to contribute positively to the earnings of the Kencana Petroleum group for the financial year ending July 31, 2011.


30 Jun 10, 02:34 PM [×] [o] yy: CIMB Research keeps Kencana Petroleum (5122.KU) as Outperform with unchanged MYR2.15 target; this, after oil, gas services provider awarded MYR34 million contract by Petronas Carigali to provide hook-up, commissioning services at Kanowit platform in offshore Sabah. "For the latest contract, we understand that Kencana is also required to provide procurement and vessel services, raising the contract value from MYR34 million to MYR100 million," says analyst Norziana Mohd Inon; adds this take Kencana's outstanding order book to MYR2.1 billion." Norziana expects active newsflow from Kencana to continue as it goes after MYR1 billion worth of fabrication contracts this year, of which 70% expected to come from domestic jobs; adds capacity not an issue as Kencana's 169-acre yard in Lumut running at 50% utilisation, with extra space earmarked for new contracts. Stock last down 0.7% at MYR1.44.

OSK on Kencana

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