NISP Elnusa aims for US$186mn new contract (ELSA, Rp510)

• Elnusa (ELSA) is aiming for a new bioscience, drilling and oilfield contracts worth
US$186mn from one of its oil block under ELSA’s administration. The company stated that with this new contract, ELSA’s total contract this year may reach US$326mn from US$140mn currently. From its existing US$140mn contract, around US$76mn will be executed this year while the remaining balance will be executed next year.

• For this year, the company has prepared US$75mn capex to finance ELSA’s oil field and well services and for new seismic equipment procurement. Around 50% of the capex will be financed from the recent subsidiary divestment while the rest will be financed from a combination of bank loan and equity financing.

• LSIP is trading at 2010F consensus PER of 13.9x and EV/EBITDA of 6.1x.