Malaysia Tanjung Offshore fair value cut

KUALA LUMPUR, Dec 17 (Reuters) - Amresearch said on Wednesday that it was cutting its fair value estimate for Tanjung Offshore.

- We are maintaining our hold recommendation on Tanjung Offshore Bhd (TJGO.KL) (TOFF) with a lower fair value of RM0.94/share (from RM1.29/share earlier) due to cuts in our earnings forecasts.

- The group has fully secured financing to buy six vessels to be delivered next year. As the global supply for offshore support vessels (OSV) is still tight, TOFF's management is hoping to secure charters for five of these vessels at a daily rate of US$1.80/brake horse power (bhp).

- The delivery of MV. Tg. Gelang has been slightly delayed from December this year to January 2009 for which TOFF is seeking late payment charges. This vessel has already been chartered by Carigali-PTTEP Operating Co Sdn Bhd at a daily US$3.30/bhp beginning in December 2008.

- Contribution from TOFF's vessel chartering division is expected to grow from 59% of group net profit in FY08F to 69% in FY09F, driven by the full-year contribution of seven OSV's delivered in FY08 and partial contribution from six vessels in FY09.

(Reporting by David Chance; editing by xxx)