Better-than-expected recovery. Bumi Armada’s (BAB) 3QFY19 results trumped expectations, recording a net profit of RM153m (+96.1% q-o-q). After adjusting for non-core items such as gain on disposal of the Offshore Support Vessel (OSV) Perdana and others worth RM75.4, allowance for doubtful debts of RM1.5m, unrealised forex losses of RM2.1m and other losses of RM1.2m, BAB registered core profit of RM83m (9.7% y-o-y, +29.4% q-o-q). 9M19 core profit stood at RM207m (-1% y-o-y), constituting 82% of our previous FY19F forecast and 78% of consensus’ forecast.

The better-than-expected results were primarily driven by the Offshore Marine Services (OMS) segment whose gross profit doubled to RM46m (+3% y-o-y, +103% q-o-q) on a q-o-q basis. If we were to remove its one-off JV losses from its OMS segment, this segment would actually record a positive EBIT of RM9 for the first time this year. Overall OSV utilisation has increased by 7% q-o-q and 15% y-o-y after the disposal of four vessels in 3QFY19 and higher overall market utilisation from the market. It currently has a fleet of 32 OSVs. Floating Production and Operation (FPO) gross profit stood at RM226m (+4% y-o-y, -19% q-o-q). The FPO segment‘s gross profit was mainly driven by the improvement of Kraken’s operationally efficiency, offset by a one-off discount obtained from vendors on costs incurred during the conversion phase of the vessel in 2QFY19.

The sale of Armada Perdana is expected to offer cost savings of up to RM15m per quarter to boost BAB’s profit going forward.

Outlook
Offshore Marine Services (OMS)
We expect the OMS segment to improve further from this juncture, as utilisation rates have picked up consistently over the last few quarters due to the ramp-up in exploration activities in Malaysia and the sale of its idle vessels. OSV day charter rates are also improving gradually from its trough relative to global OSV charter rates. We believe this trend will continue as Malaysia is committed to continue its exploration activities in the near future.

FPO
We expect the FPO segment to improve further going forward, on stronger contributions from Armada Olambendo’s due to the aforementioned one-off cost that was incurred in 3QFY19. While Kraken has already achieved an efficiency level of above 90%, we believe that there is room for its operations to improve and that an efficiency rate of above 90% for the Armada Kraken vessel would be the new normal. Besides Kraken and Olambendo, the operations of the other vessels have remained status quo.

Idle vessels
The Armada Installer is currently looking for jobs in the Caspian Sea and some contracts are expected to be awarded in 1HFY20. The OMS segment is expected to pick-up even further if BAB secures a contract for the Armada Installer. We do not expect Claire to secure any contracts in the near term despite BAB claiming that management is in the negotiation phase to either sell or charter the vessel. Our base assumption is for the Armada Installer and Armada Claire to stay idle for the remainder of FY19 and FY20.

We upgrade our earnings assumption by 13/19/15% for FY19-21F to account for the better-than-expected performance from both its FPO and OMS segments.

Valuation and recommendation
Maintain BUY at higher TP of RM0.75, based on 13.8x FY20 EPS, which is 0.5SD below Yinson’s 5-year historical mean average PE of 17.0x. Our TP of RM0.75 implies a price to book value of 1.2x. We believe that the worst for BAB is over. The company has resolved its debt issues and is improving its operations progressively, as seen in the sequential improvements over the last three quarters. Earnings are expected to be stable going forward. The company is focusing on improving its existing operations and is not planning to venture into any new projects until it lowers its net gearing significantly.

Just buy and wait

Until next qr out

Just buy and wait

Just buy and wait

nothing ishard yumee for small fish is it

Hahahahahahaah

When I said nobody know I mean you don’t know even operator don’t know all the fact

IK nobody know what happen next just buy and wait

Tony go buy yourself and meet johnwet do your wet wet thing

just wait and buy , buy and wait

YuMee just buy and go eat play travel

Better-than-expected recovery. Bumi Armada’s (BAB) 3QFY19 results trumped expectations, recording a net profit of RM153m (+96.1% q-o-q). After adjusting for non-core items such as gain on disposal of the Offshore Support Vessel (OSV) Perdana and others worth RM75.4, allowance for doubtful debts of RM1.5m, unrealised forex losses of RM2.1m and other losses of RM1.2m, BAB registered core profit of RM83m (9.7% y-o-y, +29.4% q-o-q). 9M19 core profit stood at RM207m (-1% y-o-y), constituting 82% of our previous FY19F forecast and 78% of consensus’ forecast.

The better-than-expected results were primarily driven by the Offshore Marine Services (OMS) segment whose gross profit doubled to RM46m (+3% y-o-y, +103% q-o-q) on a q-o-q basis. If we were to remove its one-off JV losses from its OMS segment, this segment would actually record a positive EBIT of RM9 for the first time this year. Overall OSV utilisation has increased by 7% q-o-q and 15% y-o-y after the disposal of four vessels in 3QFY19 and higher overall market utilisation from the market. It currently has a fleet of 32 OSVs. Floating Production and Operation (FPO) gross profit stood at RM226m (+4% y-o-y, -19% q-o-q). The FPO segment‘s gross profit was mainly driven by the improvement of Kraken’s operationally efficiency, offset by a one-off discount obtained from vendors on costs incurred during the conversion phase of the vessel in 2QFY19.

The sale of Armada Perdana is expected to offer cost savings of up to RM15m per quarter to boost BAB’s profit going forward.

Outlook
Offshore Marine Services (OMS)
We expect the OMS segment to improve further from this juncture, as utilisation rates have picked up consistently over the last few quarters due to the ramp-up in exploration activities in Malaysia and the sale of its idle vessels. OSV day charter rates are also improving gradually from its trough relative to global OSV charter rates. We believe this trend will continue as Malaysia is committed to continue its exploration activities in the near future.

FPO
We expect the FPO segment to improve further going forward, on stronger contributions from Armada Olambendo’s due to the aforementioned one-off cost that was incurred in 3QFY19. While Kraken has already achieved an efficiency level of above 90%, we believe that there is room for its operations to improve and that an efficiency rate of above 90% for the Armada Kraken vessel would be the new normal. Besides Kraken and Olambendo, the operations of the other vessels have remained status quo.

Idle vessels
The Armada Installer is currently looking for jobs in the Caspian Sea and some contracts are expected to be awarded in 1HFY20. The OMS segment is expected to pick-up even further if BAB secures a contract for the Armada Installer. We do not expect Claire to secure any contracts in the near term despite BAB claiming that management is in the negotiation phase to either sell or charter the vessel. Our base assumption is for the Armada Installer and Armada Claire to stay idle for the remainder of FY19 and FY20.

We upgrade our earnings assumption by 13/19/15% for FY19-21F to account for the better-than-expected performance from both its FPO and OMS segments.

Valuation and recommendation
Maintain BUY at higher TP of RM0.75, based on 13.8x FY20 EPS, which is 0.5SD below Yinson’s 5-year historical mean average PE of 17.0x. Our TP of RM0.75 implies a price to book value of 1.2x. We believe that the worst for BAB is over. The company has resolved its debt issues and is improving its operations progressively, as seen in the sequential improvements over the last three quarters. Earnings are expected to be stable going forward. The company is focusing on improving its existing operations and is not planning to venture into any new projects until it lowers its net gearing significantly.

thanks lok

Forgot to mention YuMee he sell at 0.21 not because of boss but his own cleverness ..........hahahahah

Boss only allow 4574 to reach 0.30, johnwet 0.28, IK 0.40, mf 0.15,apan 0.16, they all leave me alone already , you also will leave so soon ..,,..,,,,,,,

Oh so sad 2017 mean you will leave us soon

YuMee don’ t have money to buy lose only left underwear

IK don’t wait just buy

On the way ....,,,,,,

should win the case

Since 0.28 4574 sold all already IK hahahahahaha

1986 you sell yourself to johnwet go go go

Hahahahahaha IK repent already

see you at 0.72

2030you Switch yourself and go buy high sell low

coming

Paktua when the end of the world you can get it

http://www.enanyang.my/news/20191125/【视频】e南洋行家论股-2019·11·25/

http://www.enanyang.my/news/20191125/【视频】e南洋行家论股-2019·11·25/
Just buy and wait

Better-than-expected recovery. Bumi Armada’s (BAB) 3QFY19 results trumped expectations, recording a net profit of RM153m (+96.1% q-o-q). After adjusting for non-core items such as gain on disposal of the Offshore Support Vessel (OSV) Perdana and others worth RM75.4, allowance for doubtful debts of RM1.5m, unrealised forex losses of RM2.1m and other losses of RM1.2m, BAB registered core profit of RM83m (9.7% y-o-y, +29.4% q-o-q). 9M19 core profit stood at RM207m (-1% y-o-y), constituting 82% of our previous FY19F forecast and 78% of consensus’ forecast.

The better-than-expected results were primarily driven by the Offshore Marine Services (OMS) segment whose gross profit doubled to RM46m (+3% y-o-y, +103% q-o-q) on a q-o-q basis. If we were to remove its one-off JV losses from its OMS segment, this segment would actually record a positive EBIT of RM9 for the first time this year. Overall OSV utilisation has increased by 7% q-o-q and 15% y-o-y after the disposal of four vessels in 3QFY19 and higher overall market utilisation from the market. It currently has a fleet of 32 OSVs. Floating Production and Operation (FPO) gross profit stood at RM226m (+4% y-o-y, -19% q-o-q). The FPO segment‘s gross profit was mainly driven by the improvement of Kraken’s operationally efficiency, offset by a one-off discount obtained from vendors on costs incurred during the conversion phase of the vessel in 2QFY19.

The sale of Armada Perdana is expected to offer cost savings of up to RM15m per quarter to boost BAB’s profit going forward.

Outlook
Offshore Marine Services (OMS)
We expect the OMS segment to improve further from this juncture, as utilisation rates have picked up consistently over the last few quarters due to the ramp-up in exploration activities in Malaysia and the sale of its idle vessels. OSV day charter rates are also improving gradually from its trough relative to global OSV charter rates. We believe this trend will continue as Malaysia is committed to continue its exploration activities in the near future.

FPO
We expect the FPO segment to improve further going forward, on stronger contributions from Armada Olambendo’s due to the aforementioned one-off cost that was incurred in 3QFY19. While Kraken has already achieved an efficiency level of above 90%, we believe that there is room for its operations to improve and that an efficiency rate of above 90% for the Armada Kraken vessel would be the new normal. Besides Kraken and Olambendo, the operations of the other vessels have remained status quo.

Idle vessels
The Armada Installer is currently looking for jobs in the Caspian Sea and some contracts are expected to be awarded in 1HFY20. The OMS segment is expected to pick-up even further if BAB secures a contract for the Armada Installer. We do not expect Claire to secure any contracts in the near term despite BAB claiming that management is in the negotiation phase to either sell or charter the vessel. Our base assumption is for the Armada Installer and Armada Claire to stay idle for the remainder of FY19 and FY20.

We upgrade our earnings assumption by 13/19/15% for FY19-21F to account for the better-than-expected performance from both its FPO and OMS segments.

Valuation and recommendation
Maintain BUY at higher TP of RM0.75, based on 13.8x FY20 EPS, which is 0.5SD below Yinson’s 5-year historical mean average PE of 17.0x. Our TP of RM0.75 implies a price to book value of 1.2x. We believe that the worst for BAB is over. The company has resolved its debt issues and is improving its operations progressively, as seen in the sequential improvements over the last three quarters. Earnings are expected to be stable going forward. The company is focusing on improving its existing operations and is not planning to venture into any new projects until it lowers its net gearing significantly.

Better-than-expected recovery. Bumi Armada’s (BAB) 3QFY19 results trumped expectations, recording a net profit of RM153m (+96.1% q-o-q). After adjusting for non-core items such as gain on disposal of the Offshore Support Vessel (OSV) Perdana and others worth RM75.4, allowance for doubtful debts of RM1.5m, unrealised forex losses of RM2.1m and other losses of RM1.2m, BAB registered core profit of RM83m (9.7% y-o-y, +29.4% q-o-q). 9M19 core profit stood at RM207m (-1% y-o-y), constituting 82% of our previous FY19F forecast and 78% of consensus’ forecast.

The better-than-expected results were primarily driven by the Offshore Marine Services (OMS) segment whose gross profit doubled to RM46m (+3% y-o-y, +103% q-o-q) on a q-o-q basis. If we were to remove its one-off JV losses from its OMS segment, this segment would actually record a positive EBIT of RM9 for the first time this year. Overall OSV utilisation has increased by 7% q-o-q and 15% y-o-y after the disposal of four vessels in 3QFY19 and higher overall market utilisation from the market. It currently has a fleet of 32 OSVs. Floating Production and Operation (FPO) gross profit stood at RM226m (+4% y-o-y, -19% q-o-q). The FPO segment‘s gross profit was mainly driven by the improvement of Kraken’s operationally efficiency, offset by a one-off discount obtained from vendors on costs incurred during the conversion phase of the vessel in 2QFY19.

The sale of Armada Perdana is expected to offer cost savings of up to RM15m per quarter to boost BAB’s profit going forward.

Outlook
Offshore Marine Services (OMS)
We expect the OMS segment to improve further from this juncture, as utilisation rates have picked up consistently over the last few quarters due to the ramp-up in exploration activities in Malaysia and the sale of its idle vessels. OSV day charter rates are also improving gradually from its trough relative to global OSV charter rates. We believe this trend will continue as Malaysia is committed to continue its exploration activities in the near future.

FPO
We expect the FPO segment to improve further going forward, on stronger contributions from Armada Olambendo’s due to the aforementioned one-off cost that was incurred in 3QFY19. While Kraken has already achieved an efficiency level of above 90%, we believe that there is room for its operations to improve and that an efficiency rate of above 90% for the Armada Kraken vessel would be the new normal. Besides Kraken and Olambendo, the operations of the other vessels have remained status quo.

Idle vessels
The Armada Installer is currently looking for jobs in the Caspian Sea and some contracts are expected to be awarded in 1HFY20. The OMS segment is expected to pick-up even further if BAB secures a contract for the Armada Installer. We do not expect Claire to secure any contracts in the near term despite BAB claiming that management is in the negotiation phase to either sell or charter the vessel. Our base assumption is for the Armada Installer and Armada Claire to stay idle for the remainder of FY19 and FY20.

We upgrade our earnings assumption by 13/19/15% for FY19-21F to account for the better-than-expected performance from both its FPO and OMS segments.

Valuation and recommendation
Maintain BUY at higher TP of RM0.75, based on 13.8x FY20 EPS, which is 0.5SD below Yinson’s 5-year historical mean average PE of 17.0x. Our TP of RM0.75 implies a price to book value of 1.2x. We believe that the worst for BAB is over. The company has resolved its debt issues and is improving its operations progressively, as seen in the sequential improvements over the last three quarters. Earnings are expected to be stable going forward. The company is focusing on improving its existing operations and is not planning to venture into any new projects until it lowers its net gearing significantly.

DBS comment really very authoritative and informative, not like Malaysia bank

I hope the politician in Malaysia more play stock not’t play politic

Because lim. guan yin

Hahahaha

Happy YuMee not with johnwet

Really fund to trade here

This few day went to England drink tea thanks armada

The way I do invest hard to explain only can say thank armada and money money money

Hahahahaha hahahahah count money everday

At lease 0.72 end of 2019

IK just buy and wait until 4Q report

https://www.thestar.com.my/business/business-news/2019/11/25/affin-hwang-maintains-039buy039-on-bumi-armada-tp-at-62-sen

potential catalysts. We believe that BAB’s 30% owned FPSO with India's Oil and Natural Gas Corporation (ONGC), as well as the chartering of BAB’s unutilized vessels Claire and Installer would all provide positive surprises for the stock.

Impetus from OSV recovery and resolution of Kraken issues. We believe that the pickup in industry utilisation rates for offshore support vessel (OSV) is expected to drive utilisation for Bumi Armada’s (BAB) vessels higher. There were already noticeable improvements in 2QFY19 and BAB’s plans to sell more idle OSVs would lift utilization rates higher while bringing overall operational cost down. The resolution of issues related to its FPSO Armada Kraken improved BAB’s FPSO profits substantially in 2QFY19. BAB’s debt issues have improved after its refinancing activities. Currently, a big portion of its short-term debt is ring-fenced through project financing. We believe that the company’s cash flows are sufficient for future debt payments. We re-instate coverage with a BUY call at target price (TP) of RM0.60 based on 13.8x FY20 earnings per share.

Where we differ. We have prescribed the P/E method of valuing the company as we believe that BAB has resolved its financing woes and is on track to record stable earnings.

Potential catalysts. We believe that BAB’s 30% owned FPSO with India's Oil and Natural Gas Corporation (ONGC), as well as the chartering of BAB’s unutilized vessels Claire and Installer would all provide positive surprises for the stock.

Risks

Operational failures by FPSOs. Any operational failures by any of BAB’s FPSOs (especially Armada Kraken or Armada Olambendo) would put BAB in a very tough position as most of its earnings are dependent on these 2 vessels.

Economic viability. Offshore oil & gas capex is largely dependent on the outlook for crude oil price, which will ultimately determine contracts or utilisations in the pipeline.

Valuation

Our TP of RM0.60 is based on 13.8x FY20F EPS. Our target multiple of 13.8x is 0.5SD below Yinson’s (YNS MK) 5-year historical mean P/E of 17.0x.

Sheep shhh........shh...........

Pls sell some more

i3 go to play with Johnwet you deserve wet wet wet of John wet

Ncm88 you are 8 very 8 and no shares , later just look we count money