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Many offshore platforms in Malaysia are aging. They require maintenance and crane replacement. This is a great opportunities for service contractors like Handal Energy Berhad, which specialise in offshore crane services and engineering support.
Small Malaysian oil and gas service companies typically trade at around 8x – 12x price-to-earnings (PE).
Assuming Handal returns to profitability with:
Revenue: RM80 million (back to its glory days)
Net margin: 8%
Estimated net profit would be around RM6.4 million.
With 10x PE valuation the share price should be RM0.142 per share (assuming super bull case)
Handal Energy Berhad HANDAL is a Malaysian Oil & Gas services provider focusing on offshore crane maintenance, pipeline engineering and lifting solutions for offshore platforms.
The company works with major operators such as ExxonMobil, PETRONAS and Shell, providing essential maintenance services for offshore assets.
As Malaysia’s offshore infrastructure ages, demand for maintenance and overhaul services is expected to increase, positioning HANDAL to benefit from long-term industry spending.
