April 22, 2026
THIS REPORT HAS BEEN PREPARED BY MAYBANK INVESTMENT BANK BERHAD

Perdana Petroleum
Ready for the next offshore upcycle
Initiate coverage with BUY @ TP: MYR0.23
We initiate coverage on Perdana Petroleum with a BUY call and TP of
MYR0.23, pegged to a mid-upcycle FY27E PER of 11x, which would still be a discount to its peak of 13.3x. Our 3-year (FY25-28E) net profit CAGR of
36% is underpinned by i) a modest DCR growth of 3% annually; ii) a higher utilisation rate assumption of 63%-65% in FY27-28E; and iii) positive operating leverage in view of expectations of a multi-year upcycle in domestic capex spending from PETRONAS in 2027-2028E. Its fleet
expansion exercise and the resumption of dividend payouts are further positive re-rating catalysts. Key risks include: i) PETRONAS capex spending risks; ii) suspension or loss of PETRONAS license; iii) unexpected downtime risk; and iv) contract termination.
To ride on the upcycle in capex spending
Following a major oil price upcycle, our observation suggests that
PETRONAS tends to initiate a corresponding capex upcycle, usually with a lag of approximately one year. Moreover, the energy security theme could also see PETRONAS stepping up investments to sustain production levels and enhance resource replenishment. We are of the view that there will be a multi-year PETRONAS capex upcycle beginning 2027E. As such, the demand for OSVs should also see growth and this could propel Perdana into an earnings-growth mode amidst higher vessel utilisation.
Strong 3-year FY25-28E CNP CAGR of 36%
We forecast Perdana Petroleum’s earnings to grow at a FY25-28E 3-year core net profit (CNP) CAGR of 36%, led by a revenue CAGR of 8% and enhanced by an expansion in the group’s CNP margins to 15.7% in FY28E (from 7.9% in FY25). We expect revenue growth to be driven by: i) a modest DCR growth of 3% annually; ii) a higher utilisation rate assumption of 63% in FY27E and 65% in FY28E (from 52% in FY25); and iii) higher third- party charters due to higher vessel demand from PETRONAS and related
Petroleum Arrangement Contractors (PACs).
Now at ex-cash 4x FY27E PER
With its fleet of 14 vessels (averaging 15 years in age), Perdana Petroleum
is a clear pure-play OSV proxy to the multi-year capex spending upcycle
(which could happen in 2027-2028E). During the previous upcycle in 2023- 2024, Perdana underwent a major PER re-rating, with multiples peaking at 13.3x. As such, with expectations of a PETRONAS spending upcycle in
2027E, we deem our target PER of 11x (which is at mid-upcycle PER, but
still at a discount from peak) to be justified. Also, with a net cash of
MYR160m as at end-Dec 2025 (about 43% of current market cap), Perdana Petroleum is currently trading at about 7.5x PER on FY27E EPS (~4x ex-cash PER on FY27E EPS