Perisai ... Oct09

Perisai is the first company in the O&G industry in the Asia-Pacific region to be awarded the accolade for recognition of Perisai’s potential contribution to the development of marginal and uneconomical offshore oil and gas (O&G) fields using MOPSU (mobile offshore production & storage unit) technology. It appears that the MOPSU will change the global landscape of O&G sector almost instantaneously.

Without the MOPSU, Perisai continues to be sustained by its derrick lay barge, the Enterprise 3, which has been contracted out at a day rate of US$95,000 to TL Offshore, a unit of Sapura Crest Petroleum Bhd for 4.5 years up to 2012.
Enterprise 3 started contributing in November 2008, and was also responsible for Perisai’s record earnings in the first quarter of 2009.

For the second quarter to June 30, Perisai recorded a net profit of RM17.1mil, a tenfold increase on a year on year basis from RM1.71mil previously. On a quarterly basis though, it was almost flat compared to the previous quarter’s reported earnings of RM16mil.

These strong earnings came mostly from its Enterprise 3 and its saturation diving system (SAT) that are on long-term charter. Hence, for the first half of 2009, Perisai’s operating margin improved dramatically to 77.5% from 10.3%.

Perisai recently raised US$10mil from its redeemable convertible bonds issuance. It has also received approval from the Securities Commission to raise funds through a 10% private placement of its shares. This placement should be completed within the next two months.

It is a no brainer that the US$10mil that it raised from the recent redeemable convertible bonds and the expected RM40mil that will be raised soon through a 10% private placement are mainly meant for this maiden marginal field venture that will make MOPSU commercially viable if everything goes as planned.