SINGAPORE - Shares of oil refining firm Singapore Petroleum Corporation (SPC) bucked a weaker market to gain as much as 3.1 per cent on Wednesday despite poor final year results, as investors saw an attractively priced stock.
A local dealer said that most investors had factored in the bad news and there was no downside left in its share price.
SPC, 45 per cent owned by rigbuilder Keppel Corp , reported a 55 per cent fall in full-year net profit on Tuesday due to falling oil prices that required a writedown in the value of inventory.
UBS said in a report SPC's results were in line with its expectation and maintained a 'buy' rating with a price target of S$2.80.
'SPC's balance sheet remains strong and it lowered its debt level by 31 percent to S$574 million, with a net debt-to-equity ratio of 0.1x,' said UBS, adding this would help SPC fund upstream oil development and maintain a high dividend payout.
But Goldman Sachs, which has a target price of S$1.80 for the firm, said in a report on Tuesday that 2009 would be even more challenging for SPC, driven by lower refining margins and crude oil prices .
By 0413 GMT, SPC rose 2.7 per cent to S$2.29. Keppel Corp was down 2.7 per cent at S$4.04.
The benchmark Straits Times Index fell 1.67 per cent. -- REUTERS
Source :Business Times
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