Net profit is at RM240mil. The RM263mil includes RM23mil profit attributable to those who are not shareholders of the company (i.e. shareholders of non-100% held subsidiaries).

This looks like a clean RM240mil profit with minimal adjustments needed.

a. RM0.9mil impairment written back
b. RM10.2mil unrealised FX loss

The share of results of JV is heavily being understated due to losses from Armada Sterling V wiping off profits from other JV operations. There might be a "hidden" profit of RM30mil to RM50mil per quarter here once they sort out Armada Sterling V.

Keep in mind that this is going to be the "best year ever". We should hit RM1bil in net profit this year, assuming no surprises. But note that next year onwards, profits will only get lower as Kraken lease enters the option period, and then Armada Sterling III lease enters option period in 2027. We are still pending news of further renewal for Armada Sterling II lease which is now in the first option year, while Armada TGT contract is due to expire in Q4 2024.

As always, for today's quarterly result, hope for the best but prepare/expect the worst. "Normal" profits should be in the range of RM220mil to RM260mil. Might even overshoot the top end slightly as Q1 forex was favourable and we should be getting some contribution from Armada Sterling V, as well as lower depreciation expenses post kitchen sinking in Q4 2023. Just pray and hope there are no nasty surprises in there.

Thirai, that's absolutely true. The focus 1 to 2 years ago was to get the ship in order. That's been achieved. What's deflated my expectations on Bumi Armada is that they're simply uncompetitive in getting new contracts (at least on the FPSO side of things). There has been much talk about going into gas and carbon capture solutions for the past 2 years, thus far management has failed to deliver.

Two years ago, the share price was hovering at the 30 to 40 sen range. It was not necessary for the company to win new contracts for the share price to move up. This has ended up being true.

Now for the next leg up, there need to be some wins. Bumi Armada was frontrunner for the Cameia FPSO job, they hired a full project team of expensive workers in anticipation, but turns out they couldn't eventually deliver at the price they'd bid at. Some RM50mil to RM100mil has been "wasted" on gas and carbon FEEDs which might well amount to nothing.

Again, at these price points, Bumi Armada is still worth considering. But short of new wins, the long-run ceiling price of the stock will be in the 70 sen range.

Do not expect to learn much, if at all anything, during tomorrow's AGM. I've submitted a handful of questions, let's see to what level of detail they provide answers/explanation.

Most of the guys who'd engage in constructive discussion are gone. Now mostly those looking to make a quick buck

@Robert, they have nothing. I have asked them a direct question for AGM, see if they respond.

www.bumiarmada.com/wp-content/uploads/2024/04/Our-Journey-.mp4

Rohan, calm your tits will ya. PAT will be in the region of RM200mil - RM250mil. Anything below RM200mil will be a disappointment.

I believe those are stock options. The exercise price is at RM0.6002.

Nobody ought to care about quarterly results anymore. If anything, there are more hidden risks than there are hidden rewards in there. New contracts - that's the mantra we ought to live by. Things are rather disappointing on that front I'd have to say.

Results out on AGM day (at noon).

www.bumiarmada.com/business/

This seems new:

In 2023, Bumi Armada was granted the Akia PSC, which spans an area of 8,394 square kilometers and encompasses the Aster and Tulip oil and gas discoveries, estimated to contain 860 BCF of gas and 60 MMboe of oil and condensate.

We have recently acquired new 3D seismic data to assess the potential for a fast-track development. The success of this initiative holds significance in shaping our standing in the upstream sector of the oil and gas industry.

If the Pharos COO was right, we should get news of the TGT FPSO extension real soon.

I hope Gary doesn't take our needling to heart. However, the fact remains Bumi Armada is unable to secure new business. If so, the best course of action would be to downsize the staff and remove the fluff - just focus on the core operations. We'd be in for a windfall if they switched focus.

Gary's greed knows no bounds. He's issuing more shares for himself, at the expense of all other shareholders.

Not sure, but I reckon it'd be relatively small. Not as lucrative as a FPSO contract for sure. Maybe something like the LNG FSU in Malta that they have.

Uniper's Grain Power Plant FCSIU is incoming. It's in the annual report. Not sure when though, could still be year(s) away.

Anybody find any other interesting nuggets, please share

On page 30, they claim to have "achieved":

1. Expand LNG re-gas business
2. Development of offshore carbon sequestration business

On page 18, they claim that there are multiple paid FEEDs centred on CO2 storage and injection vessels in progress.

On page 19, they claim to shoot a 3D seismic over Tulip (in Akia block) and will acquire other upstream assets that will need floating solutions in the success cases.

However, no specific update on:
1. Mumbai FSRU - From my sources, this project has been scrapped
2. Bluestreak CO2 - Still work in progress, nothing concrete yet
3. Madura FLNG - No update, project might not be viable

Quite a pointless annual report. Nothing significant.

Major highlights:

1) Two new upstream assets/fields have been acquired - Kojo and Talu

2) USD400mil financing has been secured (binding agreement) to refinance RM1.5bil debt.

3) Nothing about new projects whatsoever.

Bumi Armada is venturing deeper into upstream oil & gas. In addition to Akia, they are working on Talu and Kojo fields.

Sadly Bumi Armada is opting for e-AGM once again. It would've been better for shareholders face Greedy Gary in person and ask him pointed questions to his face, about his unending greed to richly reward himself at the expense of the shareholders.

Big week up ahead!

Greedy Gary has taken too much for himself, and left not much for the rest.

He is the reason Bumi Armada is decaying.

Hopefully, AK will awake from his slumber and shake things up at the top of Bumi Armada.

Greedy Gary has gotten too comfortable in his position.

LMAO they work just half-day on Friday. Intern says it is a relaxing environment, this not good for us.

The second review says no projects. Also, not good for us.

Reviews from Glassdoor

---------------------

Relaxing!

Pros

Relax culture, you can get to know everyone in the company, KLCC view, half day on Friday, 10 mins walk from public transport (LRT)

Cons

Could be better on the employee & career development structure.

---------------------

Bonus payout is considered low as compared to peers

Pros

Friendly environment, rarely working overtime

Cons

No projects. Transparency between upper management and employees is low

Advice to Management

Provide more profit sharing to the employee to retain the talent

---------------------

The 2023 Annual Report should be out in the coming days. Hopefully there are some concrete, positive developments hidden in there.

Regardless, we need some positive announcement specifically relating to a concrete contract win by June 2024. Otherwise, be prepared to write-off Bumi Armada.

If you read the recent Glassdoor review, it seems like a company without any future potential. Such a sad state of things. Gary must be held accountable for this debacle!

TimCoke when you say that often enough, it's bound to come true at some point.

Competition warming up for large gas FPSO in Southeast Asia

https://www.upstreamonline.com/exclusive/competition-warming-up-for-large-gas-fpso-in-southeast-asia/2-1-1630052

Sterling V acceptance is not happening this month. Still 3 to 6 months away, at minimum.

What now?!?!?!?

Potentially negative news: https://www.upstreamonline.com/finance/uk-north-sea-producer-waldorf-facing-liquidity-concerns/2-1-1626872

Might be good time to exit if Bumi Armada's share price spikes up in the coming week due to macro factors, namely MidEast tension and the ensuing spike in crude oil prices.

Note: This applies for those who've lost faith in the company's future potential. However, this might also be a pivotal moment as a contract award / extension or other key announcement (such as debt refinancing) might just be around the corner.

Tim quit smoking so much coke!

The Enquest's investor meet was very positive on the Kraken development, upcoming Bressay gas tieback, and future Bressay and Bently oil tie back to the Kraken production hub.

Enquest will consider purchasing the Kraken FPSO - depending on the situation at the time. But negotiations / discussions on this are ongoing.

Kraken diesel consumption to reduce by 80% with this measure. Currently, diesel spend at Kraken FPSO is around GBP30mil per annum.

Bressay gas tieback to Kraken FPSO will cost GBP60mil. Some of this will go to Bumi Armada as they will play a key role in the tieback to the FPSO.

New Indonesian FPSO tender: https://www.upstreamonline.com/field-development/feed-tenders-launched-for-platform-and-floater-for-indonesian-oilfield-development/2-1-1624929

Bumi Armada's experience with the Kraken heavy oil field might give them an advantage here. But it's possible that this project might not be financially sound.

Well it that case, might've been some last minute sector rotation in to O&G stocks, perhaps on a bet that crude price will continue rising over the Raya break.

Weird closing, someone bid 4+mil units at RM0.62 and above

This is a medium-sized gas FPSO that should be of strong interest to Bumi Armada. Might even drive cost synergies with their existing operations in Vietnam (i.e. TGT FPSO).

2. www.jadestone-energy.com/gas-sales-heads-of-agreement-signed-for-nam-du-u-minh-fields-offshore-vietnam/

For further reading:

1. www.jadestone-energy.com/wp-content/uploads/2024/01/20240126-Vietnam-NDUM-Project-Overview-vF.pdf

FID is expected in mid to late 2025. So still over a year to go.

Keep an eye out for this: https://www.upstreamonline.com/exclusive/singapore-player-kicks-off-bid-battle-for-prized-asian-gas-fpso/2-1-1623122

Singapore-headquartered Jadestone Energy has launched the bid process for a prized floating production, storage and offloading vessel required for its Nam Du and U Minh (NDUM) gas fields development offshore Vietnam.

The much-delayed shallow water development had been very close to sanction pre-Covid, but the operator is not expecting there to be much of a capex increase despite the passing years, Upstream has learned.

Walao last year's report card would've failed. They failed to achieve anything significant. Most important thing they achieved was stabilization of the Kraken FPSO.

In the upcoming weeks/months, we can expect some wins from the current projects being worked on.

1. Shell FSIU
2. Bluestreak FCSIU
3. Madura FLNG
4. Mystery FSRU
5. Mystery Indonesian CCS project
6. Abadi Onshore Gas Plant
7. Pipelay Contract for SC Vessels in Caspian Sea
8. Multi-year extension for TGT FPSO
9. Multi-year extension for Sterling II FPSO

For items 1 to 6, we should hope to secure 2 to 3 contracts. If we hear nothing about these by the end of the year, assume we’ve failed to secure them.

Item 7 will be a huge win as the revenue will mostly translate to net profit gains, given that the vessels are cold stacked and costing the company every month (plus depreciation).

Item 8 and 9 are expected. Not getting either will be a big loss.

We won’t see a new FPSO win for the next year or so as Bumi Armada doesn’t have any serious prospects at the moment.

Thank you chartists and technical traders for doing the dirty work.

Just heard from Pharos that the lease extension for the TGT FPSO will be signed in the middle of next month. Likely to be for 2 year period (with a further 5 year extension thereafter).