https://www.bfm.my/podcast/morning-run/the-breakfast-grille/mynews-profitable-growth-first-second-quarter-earnings

https://www.energyvoice.com/oilandgas/551730/waldorf-prodution-no-comment-on-liquidity-woes/

https://www.energyvoice.com/oilandgas/551730/waldorf-prodution-no-comment-on-liquidity-woes/

Nik. I think its still managable given that the JV only 1/4 even if the field is to be liquidated

https://www.ogv.energy/news-item/enquest-to-drill-biggest-north-sea-oil-field-in-20-years

https://www.telegraph.co.uk/business/2024/04/09/biggest-north-sea-oil-find-in-decades-drilled-first-time/

YTD net bought of RM80M+ from FF

Nik. I thought in the link. Potential extension to 5 years?

5G + AI

Yes. And silicon photonic for optical tranc
Advanced packaging tru stacked die for memory

Recovery to pre-Covid-19 profit levels achievable by FY10/26F We see Mynews at an inflection point, with its food processing centre (FPC) currently operating at 70% utilisation, which is close to breakeven. Management also guided that it has managed to reduce food wastage from its FPC to be in line with the industry average. With the focus on expanding its store footprint by another 80-100 stores in FY24F, we expect Mynews’s revenue to grow by 14.5% yoy in FY24F. This is reflective of our overall constructive view on private consumption trends into 2024F, as articulated below. We believe the higher store openings in FY24F compared to FY23 should drive up utilisation of its FPC, gradually lifting gross margins back to 37%, last seen in FY17, and help Mynews return to profitability in FY24F. We expect FY25F and FY26F core net profit to jump 66.9% and 70.8%, respectively, to reach pre-Covid-19 highs of RM31m by FY26F.

From CIMB

If BAB can get 1 Big and 1 small projects. I think CIMB will give a good TP and lower the Beta from 1.5x also will translate to high TP.

https://www.upstreamonline.com/field-development/indias-ongc-starts-bid-battle-for-much-delayed-contract-at-flagship-deepwater-asset/2-1-1616393

Bcos of low value og gas?

The report available here

https://www.bursamarketplace.com/mkt/tools/research

Foreign shareholdings now increase to 15%

Likely leakage of info in website

Wow...look like big project underway

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

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

Nik. What is the link about?

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

Look like madura FLNG will be finailized anytime this year.

How much would this fpso contribute to the profit and how this would tie with madura FLNG?

Yes. Rohank

Got ah. Thanks stakeholder in the previous post

https://www.linkedin.com/posts/oilandnaturalgascorporation_ongc-energynowandnext-energysecurity-activity-7169660663672295425-sHID?utm_source=share&utm_medium=member_android

https://www.upstreamonline.com/rigs-and-vessels/major-fpso-company-says-not-enough-competitors-for-big-high-cost-projects/2-1-1606125

Nick how do you interpret the last sentense of this from RHB
e sizeable impairment on Armada Kraken caught us by surprise, and management explained that it was mainly due to the value-in-use (VIU) of this vessel falling significantly below its net book value (NBV) approaching the end of firm period (Mar 205), coupled with a hike in the discount rate in arriving at the VIU. It was highlighted that there has been no change to contracted cash flows and the recent transformer failure did not affect the VIU. BAB is currently in talks with the client on the potential extension and the renewal rate could be 50-70% lower than its firm contract. T

cashflows. This is potentially a near-term rerating catalyst. Other potential rerating catalysts include the FPSO Armada Sterling 5 (30% owned by BAB) securing final acceptance by the client, ONGC (ONGC IN, Not Rated) in the next few months. The FPSO received first oil at the Kakinada field, offshore India, on 7 Jan 2024, and is currently in the process of stabilising operations upon which it hopes to pass the ’72-hour’ test and then secure the certificate of final acceptance from ONGC. Once final acceptance is received, the FPSO can begin to receive its full contracted BBC rate, and the nine-year firm charter period can begin. At the moment, the FPSO is likely to be receiving a proportion of its full BBC rate, as it is producing oil (the first cargo offload was on 28 Feb 2024), in our view. However, ONGC will not pay the full BBC rate until final acceptance is secured by the FPSO. Meanwhile, a potential extension of the FPSO Armada TGT-1 charter from 14 Nov 2024F to 26 Aug 2031F, could add a further 15 sen to our SOP. A contract extension is currently being negotiated between BAB and the charterer Pharos Energy (PHAR LN, Not Rated). Separately, BAB said at the analyst briefing that it already received credit committee approvals from several banks to refinance the RM1.5bn sukuk borrowings which will be maturing on 4 Sep 2024F. Hence, the probability of a successful refinancing exercise is high, in our view. Downside risks include an unexpected decline in oil prices that may cause a pause in the pace of upstream FPSO capex spending by the oil majors and national oil companies, which could impact BAB’s growth prospects. BAB’s longer-term growth plans may also require equity funding in the medium term, leading to a potential rights issue, in our view.

The RM437m impairment against the FPSO Kraken was calculated as the difference between the NBV of the asset and the VIU, with the NBV written down to the lower VIU. For information purposes, if the VIU is higher than the NBV, the NBV is not adjusted higher; however, this is not applicable in the case of the FPSO Kraken. The FPSO Kraken’s NBV is based on the original cost of construction, depreciated on a straight line basis over 25 years to its assumed residual value of 2% of the original cost. The depreciation period of 25 years encompasses both the firm charter period of eight years and the option charter period of 17 years. The VIU is calculated as net present value (NPV) of the future bareboat charter (BBC) cashflows of the FPSO, and the VIU naturally declines with the passing of time because FPSO charter contracts have a finite life. FPSO charter contracts are also split into two distinct periods, i.e. the firm charter period, and the option charter period, with the firm period usually paying the FPSO owner a high daily BBC rate, with BBC rate in the option period typically at just 30% the firm period’s BBC rate (i.e. 70% lower). As such, VIUs of FPSO charter contracts would naturally be higher if the firm charter period has many more years remaining, and become lower once the FPSO contract enters into the option charter period due to the lower BBC rate in the option period. The VIUs of FPSO charter contracts also fluctuate depending on the discount rate applied to calculate the NPV, and higher global interest rates over the past two years would have put the VIUs under pressure, we believe. Specifically in relation to the FPSO Kraken, its eight-year firm charter period is nearing its end on 31 Mar 2025F, upon which the 17-year option charter period will commence at significantly lower BBC rates. Also, the discount rate applied by BAB for the VIU calculation at end-2023 was 8.5%, which BAB confirmed was higher than the rate used in previous years’ calculations. The combination of these factors caused the FPSO Kraken’s VIU at end-2023 to fall under its NBV, resulting in the RM437m impairment. BAB emphasised at the post-results analyst briefing that the contracted cashflows for the FPSO Kraken remain unchanged. Therefore, our DCF valuation of the FPSO Kraken, which is included in our SOP-based target price, is not affected by the accounting, non-cash impairment of RM437m in 4Q23. We have applied a cost of equity discount rate of 13% to discount future FPSO Kraken cashflows to equity (Figure 4). BAB also said that the FPSO Kraken impairments had nothing to do with the failure of transformer equipment on the FPSO in May 2023.

On the other hand, BAB reported a net loss of RM166m in 4Q23, which we did not expect. This arose from RM437m impairment against the FPSO Kraken, as well as a RM77m impairment against the net book value (NBV) of the two subsea construction vessels due to delays in securing new jobs caused by sanctions against Russia. The impairments were partially offset by RM36.4m in writebacks of prior years’ provisions of doubtful debts. The FPSO Kraken impairment was due to the NBV of the asset written down to its value in use (VIU); the latter is calculated as the discounted present value of future cashflows. We explain in detail the reasons for such an impairment on page 3, but emphasise that the contracted cashflows for the FPSO Kraken remain unchanged and therefore, our DCF value of the FPSO Kraken charter contract is not affected by the accounting, non-cash impairment. Trading in BAB shares is likely to be dominated by retail flows, in our view, and the average retail investor may find it difficult to understand the rationale for such an impairment; this caused BAB’s shares to plunge 11% yesterday after the lunchtime release of its FY23 results. In our view, this is an opportunity for investors to accumulate BAB shares for a potential short-term rebound.

4Q23 core net profit of RM313m was substantially above our RM177m estimate, because of stronger-than-expected operating performance by the FPSO Kraken after all the issues relating to its transformer failures in May 2023 were fully resolved in Aug 2023. Also, BAB settled in 4Q23 long-outstanding contractual issues with EnQuest (since 2016) over the technical performance of the FPSO Kraken, and this permitted BAB to record both higher revenues and reverse prior years’ cost provisions in 4Q23 amounting to a total of RM70m. The closure of the OSV division, after the last vessel was sold in 2Q23, also saved BAB RM20m in costs during 4Q23.

MBB remains TP at 66c

Net debt 3.65B

Sukuk Murabahah of RM1,500.0 million is classified as current liabilities as the repayment is due within 12 months from the balance sheet date (i.e. September 2024). The Group is confident that the Sukuk Murabahah will be refinanced based on the following: there is sufficient time to conclude the new financing, positive indications received from the financiers, and the Group’s strong operating cash flows and significant cash holdings. As of the date of this Report, the financiers are in the process of obtaining the approval from the credit committees to support the new financing. The Group expects to conclude the new financing within the next few months. (3) The Group has successfully secured a syndicated term loan facility for USD105.5 million (RM484.7 million) (“the Syndicated Term Loan”) with a final maturity of 25 September 2028, to refinance the previous term loan facility. As the Syndicated Term Loan is repayable over 60 months, the amount due more than 12 months from the balance sheet date has been classified as non-current liabilities.

https://www.ogv.energy/news-item/enquest-seeking-production-boost-from-north-sea-kraken-area

From PIB

28/2

BAB updated their ESG in website ald

Thanks nik. Can you elaborate bit more the update you share under item no. 3 above. Interesting to know how it actually work. Does all existing FPSO support gas field. Its looks like more and more gas will be tie to FPSO going forward

Can we expect some write back from kraken this year ?

https://www.linkedin.com/feed/update/urn:li:activity:7161595091248250881?utm_source=share&utm_medium=member_android

https://www.offshore-technology.com/news/enquest-subsidiary-granted-north-sea-drilling-licence-despite-previous-fine/

https://www.linkedin.com/posts/oilandnaturalgascorporation_ongc-aatmanirbharbharat-indiaenergyweek2024-activity-7158778008659496961-pQXS?utm_source=share&utm_medium=member_android

https://www.linkedin.com/posts/oilandnaturalgascorporation_ongc-aatmanirbharbharat-indiaenergyweek2024-activity-7158778008659496961-pQXS?utm_source=share&utm_medium=member_android

https://www.linkedin.com/posts/oilandnaturalgascorporation_india-ongc-indiaenergyweek2024-activity-7157227732655898624-d4ud?utm_source=share&utm_medium=member_android

https://www.linkedin.com/posts/oilandnaturalgascorporation_india-ongc-indiaenergyweek2024-activity-7157227732655898624-d4ud?utm_source=share&utm_medium=member_android

Mrcb...the previous partner for lrt3