KUALA LUMPUR (Feb 6): Keyfield International Bhd (KL:KEYFIELD)'s latest anchor handling tug supply (AHTS) vessel order reinforces Keyfield's move to secure stronger charter demand and higher day rates, TA Securities said. 

The higher-specification, diesel-electric AHTS vessel "positions the fleet more favourably amid rising client preference for greener and higher-redundancy vessels, particularly among international oil companies", TA Securities said in a note. 

Keyfield ordered the 90-metric ton offshore support vessel for US$18 million (about RM70.7 million) as part of its Middle East expansion. This will lift its fleet size to 16 vessels in operations and under construction, including three AHTS.

The vessel will be built by Jiangsu Shunhong Marine Technology Co Ltd in China, with delivery expected between 2027 and 2028.

Funding will come from a combination of internal cash and about RM45 million in proceeds from previously-issued sukuk.

While the contract is not expected to materially affect its current year earnings, TA Securities expects positive earnings contribution from the next financial year onwards. 

The research house maintained its target price of RM1.70 and upgraded the stock to “buy” following the recent share price weakness. At Friday's midday break, the stock settled at RM1.48, giving it a market capitalisation of RM1.2 billion.

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