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

SOP will break historical high

Congraz.

https://www.telecomlead.com/telecom-chips/smic-plans-5-bn-capex-to-expand-existing-fabs-and-roll-out-three-new-103403

SMIC said the Capex is expected to be about $5.0 billion in order to expand the existing fabs and roll out of the three new projects.

Congraz

Congraz

https://www.malaymail.com/news/malaysia/2022/02/08/recovery-council-moots-for-malaysias-borders-to-reopen-sans-mandatory-quara/2040186

https://www.enquest.com/media/press-releases/article/operations-update-12

Analysts report : indo policy will hurt high cpo
INDO POLICY: WILL HAVE SUSTAINABLE CPO PRICE

WHICH ONE WE SEE THEN WHERE WE GO

Can smell good dividends otw

The only malasysia stock for commodity play i.e. oil

Armada is one of the 10 stocks of edge singapore 2022 global portfolio

OPEC+ Agrees on Another Gradual Oil-Output Hike for March https://www.bloomberg.com/news/articles/2022-02-02/opec-agrees-on-another-gradual-oil-production-hike-for-march

KUALA LUMPUR (Jan 19): Bumi Armada Bhd is planning to sell four overseas subsidiaries for a total cash consideration of US$44.5 million (RM186.6 million), as part of its plan to exit the offshore marine services business.

The subsidiaries — Bumi Armada Marine Uray Pte Ltd (BAMU), Bumi Armada Marine Pokachi Ltd (BAMP), Bumi Armada Marine Naryan Mar Pte Ltd (BAMN) and Bumi Armada Marine LLC (BAM) — are being sold to AC Management and KN Holdings, both units of PJSC Lukoil, Bumi Armada's bourse filing showed.

The proposed disposals are expected to result in a disposal loss of approximately RM25 million.

Nevertheless, Bumi Armada said the transactions would generate cash inflow to enable the group to repay and reduce its corporate debt, and allow it to redeploy and focus its resources on its core activities. It plans to use US$38 million of the proceeds to trim its debt, and set aside US$6.5 million for working capital.

It inked the sale and purchase agreement for the disposals on Wednesday (Jan 19).

BAMU, BAMP and BAMN are principally involved in ship owning, chartering and managing ships and vessels. They also provide marine support and other services to offshore oil and gas (O&G) companies.

Other than BAM — which is only involved in providing marine support and other services to O&G companies — the remaining three companies own Bumi Uray, Bumi Pokachi and Bumi Naryan vessels, which have been working for LUKOIL-Nizhnevolzhskneft Ltd Liability Co (LUKOIL NVN) in the Caspian Sea, Russia since 2016 under three charter party contracts.

BAMU, BAMP and BAMN were incorporated in Singapore, while BAM was set up in Russia. The four subsidiaries recorded a combined loss after taxation of RM56.6 million for the nine months ended Sept 30, 2021, and have combined net assets (including capital contribution) of RM219.9 million.

The disposals are expected to be completed by the first quarter of this year.

Bumi Armada's share price closed up one sen or 1.92% to 53 sen, bringing the group a market capitalisation of RM3.13 billion.

Patami =150m to 160m

QoQ 106% 114% 123% fpr ffb cpo and pk respectively. Better dividend prospect ahead