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Daewoo International is expected to begin commercial production of natural gas in Myanmar in May this year. Investment in the company is recommended with a focus on the earnings momentum from the overseas resource development.
HMC Investment Securities analyzed the company in its report as of February 13 saying, “Daewoo International has recently seen its stock price sharply dropping due to the deteriorated profitability for the fourth quarter of last year and foreign investors’ net selling. Now it is time to consider the company’s commercial production at Myanmar’s maritime gas fields in May and establish a new investment strategy.”
HMC researcher Park Jong-ryeol said, “They completed installation of all production facilities in December last year. And the entire development process rate has reached 92% now. There seems no problem with commencement of commercial production in May. At the present time being, a positive approach to investment is recommended because the company’s commercial production in Myanmar is nearing.”
The project is to develop maritime gas resources at Myanmar’s offshore blocks and sell the products through pipelines to CNUOC, an affiliate of the China National Petroleum Corporation (CNPC). HMC Investment Securities predicts that Daewoo International will increase earnings of its E&P Division by as much as 341.1% through sales of natural gas in Myanmar this year.