Thursday, December 20, 2012
IEV: UOBK says capital-raising may be on the cards, after IEV terminated an agreement for Altfield Global Resources to invest in wholly-owned unit IEV Energy Investments. Says the group will need to raise US$10 - 15 m to develop its upstream business. As IEV is currently in a net cash position, the capital requirements could be funded by a combination of debt and equity. Notes IEV's 49%-owned associate IEV (Malaysia) received a Letter of Award for a major transportation and installation project by an established OG operator for a Southeast Asian deepwater facility. The house estimates the contract value at RM 400 - 500 m, adding that its earnings forecasts already factor in the project's profit contribution. UOBK trims TP to $0.54 from $0.55 on a lower market value for associate CNG Vietnam (CNG.VH). Keeps a Hold call. On a technical basis, it notes the stock has twice rebounded from its $0.435 support level and tips it could test its next resistance at $0.62 if it breaks over $0.54. The stock is up 8.3% at $0.52.