Affin Hwang Updates Petra Energy for the Purchase of Favorable Risk-reward Securities – Business News

KUALA LUMPUR: Affin Hwang Capital Research believes that the risk-return seems favorable to Petra Energy and has improved its rating to buy it with a target price greater than 59 months of 59 sen. In addition, Petraas' contract for maintenance, construction and commissioning (HuCC) was increased by RM 150 million

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We also took momentum in terms of work programs, amounting to RM 50 million by our estimates.

"NBPP has recently completed the Production Improvement Program and is in the process of commissioning
which will increase target production to approximately 5,500-5,800 barrels per day ( "We are also convinced that the KBM Risk Service Agreement (CSR), due to expire mid-2020, is likely to be extended, given the high price of oil and good production."

Affin Hwang also believes that Petra Energy has a good chance of winning a buy-out contract for the HuCC contract for another five years, with a total outstanding backlog of RM1.6bil.

Sarawak, home Research stated that she understood that service providers like Petra Energy are still waiting for Petros to grant licenses, although it should not have any problem getting the license.