Posted by jklkk911 > 2 months ago | Report Abuse

The RM514.4m impairment is for both the Armada Kraken and SC asset.
Do we know what is the impairment amount of each?

Could it be they do not see any potential order on their SC asset for quite some time? or potentially selling it and not have take a huge loss later?

Posted by Gabriel Khoo > 2 months ago | Report Abuse

Purging the balance sheet. 2024 will be a good yeae for shareholder.

Posted by ITreeinvestor > 2 months ago | Report Abuse

Aminvest - Oil & Gas
Robust earnings growth from elevated oil prices against the backdrop of prolonged supply disruptions and past underinvestment. Companies with direct exposure to upstream production and FPSO subsector will be i n pole position to ride on
the tailwind of bouyant oil prices.

Posted by nikicheong > 2 months ago | Report Abuse

Okay so I’ve managed to find out that Bumi Armada is definitely not selling their stake in the FPSO. That means, if the UpstreaOnline article has substance, it is the Indonesian JV partner who will be selling some or all of their stake to Pertamina.

Posted by Gabriel Khoo > 2 months ago | Report Abuse

Nik. What is the link about?

Posted by nikicheong > 2 months ago | Report Abuse

Ignore, sent in error.

Posted by ITreeinvestor > 2 months ago | Report Abuse

Bumi Armada- Potential Sale of Karapan Armada Sterling III

Based on a capex of US$500mil, a project IRR of 13.5%, 49%-
associate stake and a WACC of 6%, we estimate the net
present value contribution for KAS III attributable to Bumi
Armada at RM681mil. Against our estimated book value of
RM602mil for the vessel, we expect the group to record a oneoff disposal gain of RM79mil- 9% of FY24F net profit

Posted by ITreeinvestor > 2 months ago | Report Abuse

https://klse1.i3investor.com/servlets/staticfile/533201.jsp

Posted by kmchua888 > 2 months ago | Report Abuse

Thanks ITreeinvestor for your sharing

Posted by sense maker > 2 months ago | Report Abuse

Still awaiting the pipe dream of a dividend here.

Posted by nikicheong > 2 months ago | Report Abuse

Dear Niki,

The BAB Group has no current intention of disposing its shareholdings in the FPSO asset in Indonesia.

Rest assured, the BAB Group would make the relevant disclosures where required to do so under the listing requirements.

Regards,

Bumi Armada Investor Relations

Posted by nikicheong > 2 months ago | Report Abuse

From AmInvest's research report:

"Sources from Upstream indicate that purpose of the sale is to raise additional cashflow to facilitate construction of a new unit and may occur either in part through the divestment of PT CakraPrima Satya’s stake or in full."

It's clear from the UpstreamOnline article and BAB IR's response that the divestment of the FPSO is centered around PT CakraPrima Satya's stake, which the AmInvest research report acknowledges.

I also don't understand how does divesting PT CakraPrima Satya's stake help raise additional cashflow to facilitate the construction of a new unit.

Regardless, this ties back to my initial assumption that with Pertamina in the picture, this potential stake sale is linked to the upcoming Madura FLNG project, most likely as a 50-50 JV between Bumi Armada and Pertamina.

Also, of course, the BAB IR response to my query does not mean that their intention to dispose of their ownership in the FPSO will not change in the future.

Posted by nikicheong > 2 months ago | Report Abuse

Bumi Armada is working on a project for Shell CCS LCO2 FSIU.

Posted by nikicheong > 2 months ago | Report Abuse

Older article on Shell' plan: https://www.upstreamonline.com/energy-transition/shell-eyes-asia-offshore-ccs-hub/2-1-1234165

So far no project award, Bumi Armada has been working on pre-FEED/FEED for Shell

Posted by nikicheong > 2 months ago | Report Abuse

I don't know if it's a question of incompetence or just a matter or time, but Bumi Armada has been working on their FSIU and FCSIU concepts for over 2 years. At least RM50mil, probably more, has been spent with no ROI as of yet.

Sometimes it feels like Bumi Armada should just fire all staff and departments not related to the core FPSOs that are operational. Just enjoy the ride into sunset. Take no risk, reward shareholders with all the residual equity value of the FPSOs over time.

Posted by Robert Waters > 2 months ago | Report Abuse

The FCSIU projects are of no value to Bumi Armada. Only heavily subsidized by government corporation that can secure additional grants and freebies can carry them out. For that one has to be based in a politically motivated rich country that can waste taxpayers funds on new green initiatives.

Posted by frick2fa > 2 months ago | Report Abuse

Buy armada, TP 0.68 upside 25%

Posted by Gabriel Khoo > 2 months ago | Report Abuse

ESG score of 58 – based on our assessment Our assessment of BArmada’s overall ESG score, under our proprietary ESG scoring methodology, is 58 (out of 100), making its ESG rating above average, in our view. BArmada has good disclosures but we think that more can be done in regards to its policies towards meeting its ESG goals. We maintain our BUY call on BArmada with an unchanged SOP-based TP of MYR0.66. Room for improvement in quantitative parameters We strongly believe that BArmada can improve in the following aspects: i) NOx emission; ii) SOx emission; and iii) implementing ways to introduce renewable energy into its source of energy mix. However, we highlight that BArmada has shown decent improvement over the years in: i) number of spills released to sea; ii) electricity consumption intensity; iii) GHG intensity; iv) the composition of women in senior management; and v) the number of training hours per employee. Good qualitative scoring and targets Although BArmada does not follow the Task Force on Climate-Related Financial Disclosures (TCFD) framework for ESG reporting, there are proper ESG policies in place – and, they are led by a standalone sustainability committee. BArmada has established an ESG framework, aligned with the relevant UNSDG Sustainability Development Goals 2030. The group goes the extra mile and makes sure that water is treated before being released back to sea. BArmada uses more carbon-friendly machineries to reduce its carbon emissions. All the vessels that produces waste are ensured to have been managed responsibly and is managed in compliance with the requirements under MARPOL. Also, BArmada has pledged its Net Zero Carbon Emission target by 2050. Expecting record high core net profit in FY24E With Kraken back to status quo operations and our expectations of BBC recognition for its 30%-owned Armada Sterling V FPSO beginning Apr 2024, we forecast a record-high core net profit of MYR853m in FY24E, which translates into a strong 29% YoY growth.

Mbb

Posted by ITreeinvestor > 2 months ago | Report Abuse

Expecting record high core net profit in FY24E With Kraken back to status quo operations and our expectations of BBC recognition for its 30%-owned Armada Sterling V FPSO beginning Apr 2024, we forecast a record-high core net profit of MYR853m in FY24E

Posted by vespa > 2 months ago | Report Abuse

Armada has to hit paydirt if there is to be an uptick in price

Posted by Robert Waters > 2 months ago | Report Abuse

Maybe just starting to seriously look for work would do the uptick ? A project ... anything.
It has been 9 years and they just coast.

Posted by Gabriel Khoo > 2 months ago | Report Abuse

Nik. Appreciate if you could update us the navigator QR update

Posted by nikicheong > 1 month ago | Report Abuse

Has Armada Olombendo been partially sold off?

According to the listing on the website, it was just within the past 24 hours listed as a JV FPSO.

www.bumiarmada.com/our-services/

Posted by Gabriel Khoo > 1 month ago | Report Abuse

Wow...look like big project underway

Posted by rohank71 > 1 month ago | Report Abuse

Olombendo is easily worth 4B as per most analyst reports... say sell 50% = 2B will pay off all debts.

Posted by rohank71 > 1 month ago | Report Abuse

Niki when did u realise this. or is it a mistake at their website. pls clarify with company and keep us posted.

Posted by nikicheong > 1 month ago | Report Abuse

Like I said I monitor changes on their website almost every day. It was definitely "correct" as of yesterday.

Posted by nikicheong > 1 month ago | Report Abuse

Could still be a mistake by their intern of course

Posted by bullrun168 > 1 month ago | Report Abuse

Wow, oil price was super bull !
Now Brent already at=>
$85.42 +$1.39 +1.65 %

Posted by Robert Waters > 1 month ago | Report Abuse

I think this web update is simply a mistake. They hired a nephew of one of the managers, and the guy is not too bright. That is speculation on my part.
What is more important is the oil price. That moves our target price to RM 0.85 in the next 12 weeks.
Target as reliable as most analyst estimates, excluding of course CIMB Raymond Yapp. That is not a speculation. Real target.
:-)

Posted by rohank71 > 1 month ago | Report Abuse

having a misleading website is a big problem. it shows how badly they are managed. if anyone can go and change these crucial information on their website shows how their IT controls are.

Posted by marlboroman2 > 1 month ago | Report Abuse

Re-rating is imminient in light of the continued uptick (catalyst) in Brent Oil price. This is further traceable to & explained (in layman's term) as an inevitable increase on the extrinsic and holistic value of the Sum of Parts attached to each vessel. To 90 sens then shall we speculate is the next TP?

Posted by nikicheong > 1 month ago | Report Abuse

They seem to have rectified the website issue.

Posted by Gabriel Khoo > 1 month ago | Report Abuse

Likely leakage of info in website

Posted by nickick > 1 month ago | Report Abuse

Guys, i just went all in to Armada.. hopefully it turns out well

Posted by nikicheong > 1 month ago | Report Abuse

They have confirmed it was an error. I emailed them about it.

Posted by rohank71 > 1 month ago | Report Abuse

keep our fingers crossed Niki

Posted by Gabriel Khoo > 1 month ago | Report Abuse

Foreign shareholdings now increase to 15%

Posted by ITreeinvestor > 1 month ago | Report Abuse

KUALA LUMPUR (March 19): Phillip Capital has initiated coverage on Bumi Armada Bhd (BAB) with a “buy” rating at 56 sen with a target price of 80 sen and said BAB is well-positioned to capitalise on the growing demand for floating production storage and offloading (FPSO), supported by its stronger balance sheet amid the increasing global oil and gas capital expenditure (capex) spending.

In a note on Tuesday, the research house said it expects 2024 to deliver a record-high profit driven by the full contribution of FPSO Sterling V and the normalisation of FPSO Kraken operations.

“We see multiple re-rating catalysts on the horizon, including 1) FPSO Sterling V securing final acceptance and recognising the full bareboat charter (BBC) rates, 2) FPSO TGT-1 securing 7-year charter extension, 3) both pipelay vessels securing new contracts and 4) potential new FPSO contracts win.

“Key risks include any unforeseen operational delays in existing FPSOs and securing final acceptance for Sterling V, and sharp global oil price decline affecting the global capex spending,” it said.

Posted by vespa > 1 month ago | Report Abuse

The net shorts hovers in the 50 over million range

Posted by vespa > 1 month ago | Report Abuse

I should think that is the smart money

Posted by nikicheong > 1 month ago | Report Abuse

Anybody has the full report from Phillip Capital, please share.

Posted by stncws > 1 month ago | Report Abuse

80c good target

Posted by Ninja _07 > 1 month ago | Report Abuse

The Dragon has awaken! 🐉

Posted by rohank71 > 1 month ago | Report Abuse

Technical Charts looks good. Niki well done in going all in. if can breach 57 firmly, next few days is uptrend.

Posted by lloydlim > 1 month ago | Report Abuse

Time to accumulate!

Posted by nikicheong > 1 month ago | Report Abuse

Something's gotta be brewing.

Posted by nikicheong > 1 month ago | Report Abuse

Or I should hope so at least. FPSO, FSRU, FLNG, FSO, FSIU, FCSIU...anything!

Posted by vespa > 1 month ago | Report Abuse

True... so many irons in the fire

Posted by nikicheong > 1 month ago | Report Abuse

I've been expecting for an FSRU announcement, but I've been waiting since Dec 2023 and there's been nothing.

Bumi Armada is shooting many places but no kills. The worse was the debacle with the Cameia FPSO. Truly a black mark on Bumi Armada's reputation and shows the loss of confidence of large players in the company's capabilities.