Petra Energy Net Profit Jumps Over 400% in FY27

Petra Energy Bhd has turned the corner after a difficult FY25 and first half of FY26, with its third quarter marking the start of an earnings recovery, according to MBSB Research.

In a report on Thursday, the research house said the recovery is being driven by improving work-order flow under the group’s maintenance, construction and modification (MCM) and hook-up and commissioning (HUC) umbrella contracts, a higher contribution from the Banang field now that its Petra Orion mobile offshore production unit is back online, and margin expansion from operating leverage.

Banang back, SK433 gas next

MBSB expects the momentum to build into FY27, forecasting net profit to jump more than 400% year on year to RM44 million, from an estimated RM8.3 million in FY26. It set an indicative fair value of RM0.69 on the non-rated stock, based on five times FY27 earnings, compared with its close of RM0.62 on 21 October. Including an expected dividend yield of 6.7%, that implies a total return of 18%.

Production at Banang, offshore Terengganu, resumed in April 2026 after a 15-month shutdown, and the field completed two liftings in the third quarter. MBSB expects the upstream segment to return to profit from 3Q26.

Petra Energy

The research house also expects first gas from the Adong Kechil West field in Petra’s 50%-owned Block SK433 in Miri by May to June 2027. The gas is expected to be sold to Petros under a long-term offtake arrangement, likely at a fixed price, although MBSB conservatively factors it into earnings only from FY28.

In the marine segment, Petra has agreed since July to sell three idle accommodation work barges for about RM80 million in total. MBSB said removing the vessels would end their lay-up and dry-docking costs and lower depreciation, which could return the segment to profit in FY27.

The five-times multiple is a discount to peer Dayang Enterprise’s 7.3 times, which MBSB attributed to Petra’s smaller market capitalisation and thinner trading liquidity.

Key risks include weaker Petronas spending, contract replacement risk and lower oil prices.

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