Friday, March 14, 2008

Kencana (RM1.30) - still good bet for upstream O&G


Good:
1- Oil hit USD110/brl
2- Higher dd for oil rigs
3- Australian contracts i.e to Cameron Ltd- BHP Pyrenees Project
Not so good:
1- Project delays
2- Deteriorating orderbook
3- Outsourcing of installation - execution risk
Trading range from RM1.30-1.41.


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