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Wednesday, January 22, 2014

Buy Barakah shares: Maybank IB


KUALA LUMPUR: Maybank IB Research has maintained a “buy”
call for oil and gas company Barakah Offshore Petroleum Bhd, one of three bidders for a Saudi Arabia Transportation and Installation (T&I) job.

In a research note today, it said the contract win would be announced by end-February and the job would be a major boost to sentiment, earnings and franchise value of Barakah, potentially adding RM50 million to RM70 million per annum to its net profit.

“Barakah’s fundamentals are intact. Based on the RM2.3 billion order backlog, it offers a visible three-year earnings compound annual growth rate of 34 per cent, driven largely by the Petronas T&I package A,” it said.

Maybank IB Research has maintained its RM1.85 target price for Barakah. -- BERNAMA

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