KUALA LUMPUR (Sept 26): Shares of Keyfield International Bhd (KL:KEYFIELD) spiked on Thursday to a one-month high, after the oil-and-gas services firm announced new work orders.
Keyfield rose as much as 6.5% or 15 sen to RM2.45, its highest since Aug 27. The stock was trading at RM2.44 at 9.40am, giving the company a market capitalisation of close to RM2 billion. Trading volume totalled 575,900 shares so far.
Kenanga Research noted that Keyfield is currently in the 'peak season' of the offshore support vessel (OSV) market, typically the second and third quarters of the year.
"We expect vessel utilisation to remain strong going into the third quarter ending Sept 30, 2024 (3QFY2024)," the house said in a note on Thursday, while keeping its 'outperform' call on the stock, with a target price of RM3.18.
Kenanga noted that the group's recent delivery of Keyfield Itqan (formerly known as Belait Barakah), a 239-pax accommodation work barge, on July 3, is currently being prepared for deployment.
Keyfield Aulia (a second-hand AHTS vessel) was also added to the company’s fleet after being delivered on Aug 13.
"These vessels are expected to start contributing from 4QFY2024, further driving earnings growth," the house added.
Going forward, Kenanga expects demand for chartered vessels to increase.
"Overall, we maintain that daily charter rates will continue to trend upwards in the local OSV market, as supply remains tight, while client demand continues to increase," the research house said.