I feel very comfortable with the current management.

Cimb

Good set of 1Q23 results when excluding taxes 1Q23 core net profit of RM198m was 13% lower qoq mainly due to the absence of a tax writeback that was seen in 4Q22; without this item, 1Q23 core net profit would have declined only 5% qoq. This residual decline was caused by lower FPSO Kraken uptime vs. 4Q22, and lower variation order revenues for the FPSO Olombendo. Furthermore, BAB had completed its Caspian Sea subsea construction jobs in 4Q22. These factors were partly mitigated by higher engineering services revenues, as BAB performed more of such services for its associate company in India. Against 1Q22, 1Q23 core net profit was 9% higher yoy because of higher Kraken uptime. BAB ready to take on new contracts; an award may be near Looking forward into 2Q23F, BAB will complete the sale of the laid-up FPSO Armada Claire for US$20m, and also complete the sale of its final remaining OSV; we forecast exceptional disposal gains of c.RM50m. More importantly, BAB is looking forward to the project award by TotalEnergies of an FPSO earmarked for the development of the Cameia and Golfinho discoveries offshore Angola. According to a Mar 2023 report by industry newspaper Upstream, BAB had already reserved a slot with an offshore yard in Singapore, due to the tight availability of yard space, to prepare for the potential award of the Cameia FPSO job. BAB also confirmed at its analyst briefing this afternoon that it had tendered for various other FPSO jobs, although it is careful not to take more than two large jobs simultaneously in order to not overstretch its resources. After three years of stable operations by BAB’s Kraken and Olombendo FPSO assets, BAB has successfully degeared itself, with the 1Q23 net gearing at only 0.82x vs. 1Q20’s 2.95x. BAB believes, and we concur, that it is ready for growth, and ready for new project intake. Target price uplift from assumed EPCIC award, plus lower Ke We incorporate an 11 sen uplift to our SOP valuation by assuming that BAB will win the TotalEnergies’ FPSO Cameia EPCIC project at an assumed capex of US$1.5bn and 10% margin. As this is a purely EPCIC project, the risk of a rights issue is low, in our view. We also reduce our cost of equity assumption from 16% (using beta of 2) to 13% (using beta of 1.5), as the risks surrounding BAB are much lower than in previous years. If BAB wins this award, we expect its share price to re-rate. BAB is also bidding for more Caspian Sea subsea construction work this year. Downside risks include an unexpected and material 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, impacting BAB’s future growth potential.

Thanks Nic.

The project finance loan for Armada Kraken was fully repaid in March 2023, over three months ahead of schedule

Yinson. Too big to fail. One project hitcup will stretch their balance sheet. Thats why you cant give high valuation for yinson. To be fair. They run all projects concurrently not progressively.

Net debt 4.3B

Backend will benefit. U are talking about front end

Finding sustainability in plastic packaging Plastic is widely used in many industries, especially consumer products. The regula-tions regarding the sustainability of plastic packaging are evolving and more companies are increasingly working towards environ-mentally friendly solutions.
"Sustainability has been a big topic since last year and that has transformed the in-dustry. Previously, recyclable plastic content was sold at a cheaper price, but now the trend has reversed. Plastic packaging with recycled content is selling at a higher price because of the shortage of recycled materials," Ang says. He points out that 100% of Thong Guan's products are recyclable.
Ang stresses that plastic is one of the most sustainable materials as its lighter weight re-duces its environmental footprint.
"One of the main issues with the usage of plastic is waste management, because it's light-er than water. As such, we have been working with our customers to collect all used plastic packaging since last year and recycle it our-

BY INTAN FARHANA ZAINUL
ow-profile plastic packaging company Thong Guan Industries Bhd has seen stellar growth in its top and bottom line over the last five years, on the back of increasing demand for pre-mium stretch film in Europe.
The group charted a compound annual growth rate (CAGR) of almost 10% in revenue and 18% in net profit from 2018 to 2022.
Unfazed by an expected slowdown in the economy this year,Thong Guan executive direc-tor Alvin Ang See Ming is confident the group can achieve at least 10% revenue growth as it continues to expand its production capacity amid more stable raw materials prices.
"I think we can achieve it. Last year, the second half of the year was not good for us. For this year, hopefully, it can pick up again. We have seen some pickup in demand in recent months with China reopening and raw material prices stabilising," he tells The Edge in an interview.
He acknowledges that there is a risk of an economic slowdown this year, but says that demand for plastic packaging is nevertheless expected to remain robust. The group will continue its focus on expanding into the European and US markets, which have been driving its growth over the past six years.
"The market in Europe and the US is very big for premium packaging. We don't fore-see any obstacles for us to continue to grow in the next five to 10 years especially in the stretch film segment," he says.

From the edge

Receivable means job delivred pendin payment

Vessel* sorry nik

Size of osv has been reduced and small. Hence this segment may not be run in very effective manner. The yard has been in poor condition.

Just sizeable enough to move in cleaner energy industry. Well done for armada. Do not carry too many babies. Easier to navigate tru the energy transition.

Got chance?

https://www.offshore-energy.biz/totalenergies-cheers-important-milestone-towards-sanctioning-oil-project-off-angola/

AR2022. Foreign shareholdings now at 22%+ (31/3/23) up from 12% (31/3/22)

Many dislike armada but their esg rating is good

MIB esg rating for armada is good at 20.4 improved from 33
Yinson 17.4 improved from 21.7
Dialog 26.4 improved 31.6

Armada is the 2nd best only after yinson

Thats why FF buying

I believe the new fspo must be electric support and carbon capture so it will take more time to finalize the deal to meet the requirement. Be selective is good just be patient

Niki. Why armada want to rush for contact especially fpso. Slow is good for this transition period. May secured many projects like yinson and back by billions of debts. All these projects required strong cash flow from their charters. Oil is not gold capitalixe the trend good for long term. Fpso is long term contract. Its better to prudent now than later. Yinson majority fpso orders. Good or bad if up to investor but to me is rather risky. Looking at their interest p.a. this is the 1st time armada officially shared their green stratergy

OUTLOOK FOR 2023 Notwithstanding the current uncertain times for the global economy, health and safety remain a key focus area for us. We will continue to drive the performance of our existing fleet whilst progressing ongoing projects. Moving forward, our sustainability strategies, which include gas as a transitional energy source, will drive new infrastructure projects. We will also evaluate carbon capture injection and storage projects. This will accelerate our transition towards Net Zero carbon emission by 2050. Whilst ongoing debt reduction and the strengthening of our balance sheet enable us to explore new projects, we will continue to be financially disciplined and will only pursue opportunities which are mutually beneficial to us and our clients.

From Chairman in AR 2022

No report uploaded in CIMB or UOB platform

From AR 2022

https://www.upstreamonline.com/rigs-and-vessels/analyst-predicts-bumper-year-for-fpso-awards-for-2023/2-1-1421765

I remember management of armada did mention they are exploring this biz opportunity

https://www.iea.org/fuels-and-technologies/carbon-capture-utilisation-and-storage#:~:text=Carbon%20capture%2C%20utilisation%20and%20storage%20(CCUS)%20refers%20to%20a,global%20energy%20and%20climate%20goals.&text=CCUS%20involves%20the%20capture%20of,fuels%20or%20biomass%20as%20fuel.

https://oilnow.gy/featured/more-fpsos-may-be-needed-as-guyanas-stabroek-block-discoveries-grow-hess-boss/

https://splash247.com/bw-offshore-offloads-fpso-for-125m/

Usd 1B for this project

Armada has succesfully transformed. They not only selective in their projects. You have to taking care of the prospect of ESG and boom in EV. Growing to fast in FPSO is not a good thing. Oil demand in developed countries is driving the oil price over the last decades. Price is sensitive to demand. It will world another way round. Carry too many fpso projects may not neccessary is a good thing.

Outlook. Post the ice-class vessel disposal, we have been guided that the OMS unit now has three OSVs, two sub-sea construction vessels, and one JV sub-sea construction vessel. While BAB has secured new jobs worth USD50m for the construction vessels from Lukoil, we do not discount the possibility of works being interrupted due to relevant sanctions being imposed, as a result of Russia’s invasion of Ukraine. Meanwhile, following the repayment in January, its remaining balance of Tranche 1 Term Loan Facilities is USD27m, with scheduled amortisation and final maturity in Nov 2022. Overall, operating cash flow in FY21 improved 50%, with better working capital management. Net gearing also dipped to 1.55x in 4Q21 (3Q21: 1.71x). BAB is looking to monetise Armada Claire this year, and is bidding for new FPSO jobs. It was reported by Upstream that it has submitted a tender to compete for TotalEnergies’ Cameia FPSO project in Angola. India’s Oil and Natural Gas (ONGC) KG-DWN 98/2 FPSO construction is 80% completed, and BAB aims to complete it by 2H22. 

Keep BUY. We maintain our earnings estimates but raise our TP to MYR0.65 from MYR0.62 post net debt update for FY21. Our TP also incorporates a 2% ESG discount, based on a scoring of 2.9. Our TP implies FY22F P/E and P/BV of 6.4x (below its 5-year mean of 7.2x) and 0.84x (slightly below +2SD from its 5-year mean at 0.9x). Downside risks: Contract cancellations, weaker OSV utilisation rates, and a deterioration in Armada Kraken’s operations.

RHB

https://www.upstreamonline.com/people/srinivasan-sees-a-future-for-floaters-in-the-transition-to-clean-energy/2-1-1171658

Not material...so why are we bother

From RHB:-

Good year for downstream. Management indicated that the downstream segment’s performance has improved with very positive margins in FY21, on the back of higher prices as well as trading profits made during the year. However, its utilisation rate dropped to 80% from 90% in 2020, as focus was tilted more towards the upstream side – given SOP’s sensitivity to CPO prices.

FY21 unit cost was at MYR1,600/tonne, which was flattish YoY. This was likely due to lower fertiliser application and higher PK credits. Due to the labour shortage, management only applied 75% of its fertiliser requirements for FY21. Management anticipates that unit costs will be flattish YoY in FY22 despite rising fertiliser costs, as it is able to utilise some of the carriedforward FY21 fertilisers this year. SOP has contracted fertiliser prices for its 1H requirements, at 40-50% higher. We are more conservative, and have imputed a 10-15% YoY increase in unit costs in FY22.

Good stratergy from SOP

Wow...malaysia (will benefit from oil and palm oil) and australia

Bloomberg app · Installed
Here Are the Asian Stocks Most Affected by the Ukraine Turmoil - Bloomberg.com

Wow...malaysia (will benefit from oil and palm oil) and australia

Bloomberg app · Installed
Here Are the Asian Stocks Most Affected by the Ukraine Turmoil - Bloomberg.com

From Q4 Presentation Slides

What Is Ahead For FY2022

•Sale of 3 ice-class OSVs for USD44.5m. DONE
•Armada Claire to be monetised.
•Complete construction of A98/2 FPSO.
•Refinancing of USD corporate term loan.
•New FPSO bidding opportunities with an O&G supermajor and/or existing charterer.
•Announcement of BAB’s integrated ESG strategy.

Div in may

Hit by produxtion cost

2021 debt reduced. The pbt changes from sensitity analysis will narrow as well

In 2019, SOP introduced an in-house “555 Target” with the goal to achieve 5t/ha (FY20: 3.3t/ha) of palm oil in 5 years with MYR5b in market capitalization. The ambitious target is aimed at sweating its assets by achieving optimum FFB yield and OER via best management practices to minimise the impact on the planet.

I go for 8. Early achievement from "555" set by SOP management

Sukuk 1.5B. The remaining are TLs. The effect may not big. Assuming the rate will up progressively towards the end of 2023.

If you read 2020 AR. SOP short about 30% labor. They key thing is not about shortage. But the number of labor less than previous FY. However, they still manage to keep up the output. Simply bcos they acquired havesting machanism to overcome the shortage issue. I expect earnings surprise for Q4.

LONDON (Reuters) – OPEC+ will work to integrate Iran into its oil supply-limiting accord should agreement be reached on reviving its nuclear deal with world powers, sources close to the group said, seeking to avoid market share competition that could hit prices.

60

Another 10 by end of this month