August 13, 2008
Modec Soars on TSE on Oil Facility Deal
Tokyo, Aug. 12 (Jiji Press)--Modec Inc. shares surged on the Tokyo Stock Exchange Tuesday thanks to the firm's announcement of a large oil production system contract.
The issue remained buoyant above 3,200 yen in the afternoon session after rising to as high as 3,350 yen, or 8.4 pct, in the morning.
Investors hunted Modec, which specializes in the designing and construction of offshore floating structures, on expectations that the deal will help lift its earnings.
Goldman Sachs said in a report that Modec's recurring profit in the year to December 2009 is expected to rise to 11 billion yen from the earlier forecast of 10.5 billion yen on the back of the contract. Goldman also raised its stock price target for Modec to 5,100 yen from 5,000 yen.END
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