In early trading today, the offshore support and accommodation vessels company’s share prices rose by 5 sen to RM2.73, driven by expectations of higher rates for OSVs.

By 10am, 596,000 shares had changed hands.

Yesterday, Keyfield’s group CEO and executive director Darren Kee highlighted an anticipated ongoing shortage of OSVs crucial to the oil and gas industry, noting that no new vessels were expected to be delivered to Malaysia.

He emphasised that the market would likely remain tight as long as offshore activities continue.

“We believe, and certainly hope, that rates will continue to go up,” he said during a press conference, following the handover ceremony of Keyfield Helms 1 (KH1), a dynamic positioning class two geotechnical vessel, to Helms Geomarine Sdn Bhd.

The agreement, signed in December 2023, positions KH1 to support its client in executing a three-year geotechnical investigation contract with Petroliam Nasional Bhd (Petronas), which is extendable by two years.

Kenanga IB stated that this win aligns with its expectations.

“Moreover, it indirectly suggests that Petronas might be scaling up its exploration activities, hinting at potential growth in greenfield upstream projects,” the investment bank said in a note.

Kenanga IB highlighted strong anticipated performance in the second and third quarters, anticipating full capacity operations across all vessels post-monsoon season.

“Majority of its accommodation work boats (AWBs) are currently committed to medium-term charters spanning six to nine months.

“Should demand for AWBs hold firm, we foresee the potential for higher daily DCRs in the fiscal year 2025,” it said.

Kenanga IB stated that with OSV supply constraints in Malaysia amid robust activity, it anticipated further increases in DCRs in the months ahead.

The investment bank maintained an “outperform” rating on Keyfield with a target price of RM3.

As at 12.45pm, Keyfield’s share price was up by 7 sen or 2.61% at RM2.75, giving the group a market capitalisation of RM 2.20 billion.