Posted by hng33 > 2022-08-24 16:58 | Report Abuse

Recurring and steady profit will offer overdue re-rating forward

Posted by nikicheong > 2022-08-24 17:43 | Report Abuse

Re-rating will only happen with a solid contract win. It might even re-rate once the Armada Sterling V begins operations in Q4 of this year. Without any catalyst, it'd be hard for any re-rating to occur as Bumi Armada is facing a rapidly dwindling orderbook every passing quarter.

Posted by nikicheong > 2022-08-24 17:51 | Report Abuse

Repsol fires the starting gun for brand new FPSO project in Mexico

Spanish energy company Repsol has launched the process for securing a new floating production, storage and offloading vessel to anchor its planned offshore oil development in Mexico's Block 29, where the deep-water Polok discovery and a smaller find called Chinwol are located.

Floater market sources said Repsol intends to place a leased FPSO on Block 29 in water depths of between 460 metres and 600 metres, and later tie-in an adjacent area, referred to as Block X.

Multiple FPSO market sources said selected floater contractors have been approached to compete for a front-end engineering and design contract for the Block 29 FPSO.

FPSO contractors said to be looking at this opportunity include Bumi Armada, BW Offshore, MISC and Yinson Holdings.

Japanese floater giant Modec International already operates the Miamte FPSO in Mexican waters, under a charter with Eni. The Italian operator celebrated first oil on the Amoca-Mizton-Tecoalli oil and gas complex in February 2022.

Sources consulted by Upstream suggested that Polok opportunity might fall under the radar of the two biggest floater suppliers Modec and arch rival SBM Offshore, as the pair are focused on delivering bigger units for Brazil and Guyana.

Another potential floating production project involving a foreign operator in Mexico is Woodside's Trion joint venture with state-run oil company Pemex.

The Australian player has pushed back until next year a final investment decision for a development that would feature a planned 100,000 barrel-per-day semi-submersible production unit, from a previous FID target of 2022.

Medium-sized

According to market sources, Repsol’s Block 29 requirement is for a medium-size FPSO with oil production capacity for around 60,000 barrels per day of oil, plus associated gas production, and vessel size permitting either Suezmax or Aframax tanker dimensions.

The Spanish operator is receptive to either a conversion model or a redeployment of an existing vessel and featuring an external turret mooring system.

The lease and operate term could have a fixed term of 15 years with options for extensions, but the contractual period was still to be confirmed, said sources.

First oil from Block 29 is being targeted for 2026, and Block X is expected to start producing in 2027 or 2028.

Block 29 is located in the Salina basin, in the southern part of the Gulf of Mexico.

Block 29 discoveries

Repsol and its Block 29 joint venture partners announced the Polok-1 and Chinwol-1 discoveries in May 2020. They followed up that effort with more drilling in late 2021.

Polok-1 and Chinwol-1 had a net oil pay of 200 metres and 150 metres, respectively.

In September 2021, the drilling of the Polok-2DEL appraisal well was completed with positive results, said Repsol, which added that the evaluation of the well was key to sanctioning the project towards its development phase.

“Repsol thus becomes the first international company to carry out a test of these characteristics in deep waters in Mexico,” added Repsol.

Joint venture partner Wintershall Dea said the successful appraisal well had potentially opened up a new play within Mexico’s Salina basin.

German goal

Wintershall Dea is drilling a well of its own on the same trend, targeting the Kan-1EXP well in Block 30, a few kilometres to the north of Amoca-Mizton-Tecoalli field.

Drilling of Kan-1EXP is taking place in 50 metres of water using the jack-up rig Borr Ran, which is under contract until January 2023.

The full Block 29 partners are operator Repsol (30%), Petronas (28.33%), Wintershall Dea (25%) and PTT Exploration and Production (16.67%).

The partnership also drilled an earlier unsuccessful exploration well in 2021 called Chak-1.

https://www.upstreamonline.com/exclusive/repsol-fires-the-starting-gun-for-brand-new-fpso-project-in-mexico/2-1-1282743

Posted by bullmarket1628 > 2022-08-24 21:38 |

Post removed.Why?

Posted by bullmarket1628 > 2022-08-25 07:05 |

Post removed.Why?

Posted by zonefinder > 2022-08-25 09:24 | Report Abuse

Expecting Qtr announcement tomorrow lunch time

Posted by hng33 > 2022-08-25 09:52 | Report Abuse

Awaiting armanda india regasification LNG megae project progress announcements

Posted by bullmarket1628 > 2022-08-25 10:03 |

Post removed.Why?

Posted by zonefinder > 2022-08-25 10:17 | Report Abuse

1 cent already so excited ...I'm waiting for 20 cts jump by end of year...now that will be exciting...

Posted by bullmarket1628 > 2022-08-25 11:09 |

Post removed.Why?

Posted by hng33 > 2022-08-25 11:13 | Report Abuse

>50sen

Posted by hng33 > 2022-08-25 11:16 | Report Abuse

Armanda exiting orderbook can offer Armanda last for another 7year, if take into account extension period, add another 3 year to 10 year earning visibility.

With decreasing interest expense from staggerring trim down debt every quarter, Armanda profit margin is getting higher to more than 40%

Posted by hng33 > 2022-08-25 11:40 | Report Abuse

Before surpass 50sen target level, lets it break 40sen resistance level first

Posted by Robert Waters > 2022-08-25 15:42 | Report Abuse

I know that existing order book means stability. Great for loan financing guarantees. But consider the fact that with inflation at 10% in global market, future contracts will have higher nominal values. Some risk may offer good reward.

Posted by Macgyver11 > 2022-08-25 16:48 | Report Abuse

Oh yeah! Towards 0.60c here we come...syiok syiok.

Posted by Bon888 > 2022-08-25 17:21 | Report Abuse

Quarter results will be out tomorrow or Monday. Good results will push the price over 0.40.

Posted by nikicheong > 2022-08-25 17:44 | Report Abuse

Quarter results is confirmed for tomorrow noon. Although the buying trend these past few days could mean nothing, it can sometimes mean the insiders know a good result will be reported. Let us see. Not long to go now.

Posted by hng33 > 2022-08-26 13:11 | Report Abuse

The Group reported net profit1 of RM186.3 million in Q2 2022, consistent with the Q1
2022 net profit of RM185.8 million..
Revenue from continuing operations was RM618.4 million in Q2 2022, an increase of
almost 17% compared to the previous quarter. This was mainly due to progress of the
Subsea Construction work in the Caspian Sea, as well as preliminary front end
engineering and design revenue recognised during the quarter. The solid performance
was achieved in Q2 2022 notwithstanding the impairment of RM88.0 million due to the
unsuccessful appeal of the Woodside litigation.
The future firm orderbook at the end of Q2 2022 amounted to RM13.1 billion, with
additional optional extensions of up to RM9.4 billion.

Posted by hng33 > 2022-08-26 13:13 | Report Abuse

Net profit RM 186m, EPS 3.15sen
Net profit without impairment: RM 242m, EPS = 4.1sen

Posted by nikicheong > 2022-08-26 13:18 | Report Abuse

Debt analysis: https://i.ibb.co/SR7b8nq/armada-2q22.png

Time series: https://i.ibb.co/sPb3Y7d/armada2q22-ts.png

Posted by nikicheong > 2022-08-26 13:34 | Report Abuse

Net profit attributable to shareholders: RM186.3m

Adjustments:

1) Net allowance for impairment losses: RM65.4m (RM88m impairment charge on Armada Claire, partially offset by what I believe is RM22.6m writeback on Armada Kraken following remarkable FPSO performance)

2) Unrealised FX gains: RM25.2m

Adjusted core net profit: RM186.3m + RM65.4m - RM25.2m = RM226.5m

Posted by nikicheong > 2022-08-26 13:36 | Report Abuse

Some interesting things to note:

1) Pre-FEED revenue was recognized during the quarter. This could be a strong sign that a FPSO contract win is imminent.

2) With the RM88 impairment on Armada Claire receivables, and with the vessel fully depreciated in Q1 2022, I believe that the entire Armada Claire saga is now negligible on the balance sheet.

Posted by nikicheong > 2022-08-26 13:57 | Report Abuse

The Q2 briefing slide now states "Armada Claire to be sold in 2022." In Q1, it stated "Armada Claire to be sold or scrapped in 2022." I would take the change in wording that a buyer has been secured and sale is imminent.

Also, note that in the balance sheet, there is "Non-current assets and disposal group classified as held-for-sale" amounting to RM56m. This could refer solely to the one OSV classified as "held for sale", or both the OSV and Armada Claire.

The revenue and also debt is slightly distorted this quarter due to sharp depreciation of MYR against USD. Expect the same for Q3 2022.

Posted by nikicheong > 2022-08-26 14:31 | Report Abuse

More highlights:

- Armada Sterling V (Kakinada 98/2 FPSO) - Over 90% complete as of June 2022. Planned sail away in Q4 2022.
- Only three OSVs remain; one is currently classified as an asset held for sale.
- Mumbai Port FSRU project is being progressed.
- Armada Claire to be sold in 2022.
- Bumi Armada has submitted tenders for FPSOs and will be active in select tenders in the future.
- Completed design of offshore CO2 storage and injection vessel – Floating Storage and Injection Unit (FSIU).
- Lukoil contract: Armada Constructor mobilized in June and commenced dredging, Armada Installer prepared for pipelaying work.
- In August 2022, the Group received notification from MENV that the secured term loan (USD30mil, due Q4 2022) will be extended by 12 months.


Overall, a very solid Q2 results I feel. Alas, we still need a big contract win to drive the share price significantly higher.

Posted by Macgyver11 > 2022-08-26 14:53 | Report Abuse

Very good..thanks buddy for the info.

Posted by Bon888 > 2022-08-26 15:03 | Report Abuse

Congratulations to Bumi Armada. Another remarkable quarterly result. Total Debts dropped to 6.37b.

Posted by MoneyMakers > 2022-08-26 15:11 | Report Abuse

Another excellent QR..nice & steady

Posted by bullmarket1628 > 2022-08-26 15:33 |

Post removed.Why?

Posted by Eric Lim > 2022-08-26 16:43 | Report Abuse

Walaoeh profit making company is not a good company, nobody wants to buy

Posted by bullmarket1628 > 2022-08-26 16:56 | Report Abuse

Be patient, you can keep it for collectiing the dividends every year started for next year onwards !
it's definitely better than keep it as FD !

Heng ah, Ong ah, Huat ah !

Posted by Eric Lim > 2022-08-26 17:12 | Report Abuse

Did they announce dividend?

Posted by Ramakrishna > 2022-08-26 17:33 | Report Abuse

No dividend declared

Posted by nikicheong > 2022-08-26 17:46 | Report Abuse

AmInvest - RM0.83 (unchanged)

Posted by hng33 > 2022-08-26 19:55 | Report Abuse

Next Q result, armanda will record EPS > 4sen above, and EPS will on uptrending due to lower interest expense, trim debt ever quarter.

Posted by hng33 > 2022-08-26 19:58 | Report Abuse

Focus now is continue pare down debt every quarter, boosting EPS through decreasing interest expense.

By next year, debt level will trim down below 1x, paying dividend via payout ratio 25% become affordable or least 4.5sen.

Posted by hng33 > 2022-08-26 20:01 | Report Abuse

Orderbook and extension total RM 22 billion, offer profit visibility 10x forward, allow armanda become NET CASH position after 3 year later.

Any new contract win is another catayst

Posted by Eric Lim > 2022-08-26 20:07 | Report Abuse

wow hopefully will go back RM4.00 after 3 year

Posted by hng33 > 2022-08-26 20:41 | Report Abuse

Armanda Q result clearly show consistent earning without any effect y crude oil price up or down

Posted by hng33 > 2022-08-26 20:51 | Report Abuse

No many stock can offer 10 year earning forward with CONFIRM increasing profit through decreasing interests expense, and after 3 year become net cash position.

These 10 year profits visibility only based on existing orderbook. Any new secure contact forward is additional plus profit and prolong earnings visibility longer than 10 year forward

Posted by bjgdila123 > 2022-08-26 21:53 | Report Abuse

mon sapu sapu

Posted by 1pingpong > 2022-08-26 22:29 | Report Abuse

year end will surpass 0.60 easily

Posted by 1pingpong > 2022-08-26 22:31 | Report Abuse

armada is the stock with triangle shape moving Upwards

Posted by KimSua > 2022-08-29 10:08 | Report Abuse

Good time to enter. high oil price will be here to stay. US will end their 1 million bpd release from the reserves end of September. Expect more spike by then.

Posted by bullmarket1628 > 2022-08-29 10:37 |

Post removed.Why?

Posted by Bon888 > 2022-08-29 11:33 | Report Abuse

ARMADA IS UNDERVALUED. Now trading at PE 3.82. If PE back to normal like PE15, EPS 10.87 X PE 15 = RM 1.63.

Fair value should be around RM1.60 for this company.

Posted by DevKrishna > 2022-08-29 13:01 | Report Abuse

Bumi Armada Bhd's net profit for 2QFY22 rose 33% to RM186.25 million, from RM139.86 million a year earlier, mainly due to higher revenue and favourable forex movements. Bumi Armada said its revenue for the quarter rose 4.5% to RM618.43 million, from RM591.86 million previously, due mainly to higher progress of completion of the subsea construction contract work in the Caspian Sea in 2QFY22. For 1HFY22, cumulative net profit rose to RM372.01 million from RM302.65 million, on the back of a cumulative revenue of RM1.15 billion against RM1.13 billion previously.

Posted by Ramakrishna > 2022-08-29 16:13 | Report Abuse

No dividend declared

Posted by bullmarket1628 > 2022-08-29 19:01 |

Post removed.Why?

Posted by nikicheong > 2022-08-29 22:24 | Report Abuse

Can anyone share the CIMB report please. Thanks!

Posted by bjgdila123 > 2022-08-29 22:49 | Report Abuse

collect collect.......1.00 by year end