Falcon Energy

Falcon Energy: Voyage Research maintains Increase Exposure with $0.545 TP. The house visited Falcon Energy recently to have an update on the company’s operations. The management is looking to expand its marine division further and the resource division is likely to commence operation in 2H14. The drilling services division is still undergoing restructuring and the five rigs will be delivered in 2015 and 1H 2016. Falcon had reported progress across its various divisions and the house expect the company to continue posting improving earnings. Now expect the company to report US$40m revenue, US$13m gross profit and US$7.5m PAT for 4Q14. The company issued some free warrants last December and due to dilution effect, the house now value the company at $0.545 per share.