OSK Research maintains Buy on Genting

OSK Research maintains Buy on Genting
Written by The Edge Financial Daily
Monday, 15 November 2010 08:41


KUALA LUMPUR: OSK Research is maintaining its Buy call on GENTING BHD [] but lowered the target price to RM13.81.

The research house said on Monday, Nov 15 the lower TP was after factoring in its recent downward revision in Genting Singapore’s fair value from S$2.65 to S$2.51 and after building in lower than expected sales proceeds of RM425 million from the sale of its Muturi oil & gas deferred consideration rights.

OSK Research said the disposal was a positive move for Genting to focus on gaming operations.

In 2001, the group sold its stake in the Muturi Production Sharing Contract in Indonesia and struck a separate deal that would entitle it to a share of future cash flow from the sale of liquefied natural gas.



However, delays and the risk of future fluctuation in natural gas prices coupled with the group’s intention to focus on its gaming related assets led to it realizing a one-off payment now rather than the rights to future recurring payments, which would have been subjected to the volatility of gas prices.

http://www.theedgemalaysia.com/business-news/177084-osk-research-maintains-buy-on-genting.html

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Genting up on O&G project rights sale
Published: 2010/11/15


Genting Bhd, a Malaysian casino and power group, rose the most in almost a month in Kuala Lumpur trading after receiving US$136.5 million from selling its rights to future sales of an oil and gas (O&G) project in Indonesia.

The stock climbed 1.6 per cent to RM10.32 at 10.51 am, set for its steepest gain since October 19.

Genting also climbed after its share-price estimate was raised to RM13 from RM10.65 at Credit Suisse Group AG, which said Genting is a “cheaper” exposure to its Singapore unit. - Bloomberg



Read more: Genting up on O&G project rights sale http://www.btimes.com.my/Current_News/BTIMES/articles/20101115113005/Article/index_html#ixzz15LLvlq3J