RM1.00 and beyond is very much possible, however it will be predicated on fulfilling at least half of the following:
1) 1 Major contract win for FPSO (Cameia FPSO in Angola is a good bet) 2) 1 Minor FPSO contract win (either a small/medium scale FPSO 100% owned, or a large scale FPSO owned with a JV partner) 3) 1 or 2 non-FPSO contract win (either 100% owned or JV) - e.g. FSRU, FSU, FSO etc 4) "Green energy" initiatives especially for future FPSO/non-FPSO wins, and better still if current FPSOs also incorporate elements of green energy 5) Confirmation of sale or scrapping of Armada Claire FPSO 6) Confirmation of contract extension for Armada TGT FPSO in Vietnam (might only be announced in Q4 2024, but it's all but certain the contract will be extended as new wells are still being drilled in the aged TGT field) 7) Contract extension of Armada Sterling II (Q4 2024) 8) Diversification into floating CCS and other "green" structures materialises 9) Ongoing charter of the 2 SC vessels in the Caspian Sea and 1 SC vessel in Indonesia 10) First oil achievement and then full acceptance of Armada Sterling V FPSO by ONGC at the 98/2 field in India 11) Full divestment of the two remaining offshore vessels 12) Positive development at the Kraken field such as drilling of the Kraken Western flank or tieback to the nearby Bressay and Bentley fields (as this would signal long-term contract extension for Armada Kraken FPSO which is due to expire in Q3 2025) 13) No major issues at all its current producing FPSOs and FSU - Olombendo (Angola), Kraken (UK), Sterling I (India), Sterling II (India), TGT (Vietnam), Sterling III (Indonesia) and Mediterrana (Malta)
In fact, if all 13 above become a reality in the coming two years - then we shall see a strong rally to RM2.00 levels. If Bumi Armada can add a further large-scale FPSO contract win in the coming year or two (in addition to Cameia FPSO) that is backed by a long-term charter, then we might even be seeing RM3.00 levels.
Just my two cents, please share if I have missed out anything. I've been holding 350k from RM0.225 levels and added another 100k over the past year at an average price of RM0.40. I consider myself a long-term investor, but of course if there is a crazy run in price where the valuations over-run the fundamentals, I will be ready to sell.
The Joint Ministerial Monitoring Committee (JMMC) of the OPEC+ group recommended that no changes be made to the current oil production quotas during a meeting on Wednesday, as widely expected.
The members of the JMMC “reaffirmed their commitment to the DoC which extends to the end of 2023 as agreed in the 33rd OPEC and Non-OPEC Ministerial Meeting (ONOMM) on 5th of October 2022,” OPEC said in a brief statement after the meeting.
The panel is meeting next on April 3, 2023.
The no-change in policy was widely expected by the market, considering the uncertainties in both supply and demand in the coming months. Analysts expected OPEC+ to adopt a wait-and-see approach amid significant uncertainties going forward.
Earlier this week, Saudi Crown Prince Mohammed Bin Salman and Russian President Vladimir Putin discussed OPEC+ cooperation on a phone call, according to various sources, with the focus on maintaining the stability of oil prices ahead of the virtual OPEC+ panel meeting today. Russian oil production has held up in spite of new Western sanctions and price caps, and three OPEC+ delegates have told Reuters that the Wednesday meeting was likely to conclude without any output policy changes.
In view of the uncertainties about Chinese demand and Russian supply in February and March, OPEC+ was widely expected to keep the current production levels, which reduced target output by 2 million barrels per day (bpd) from November onwards. Yet, the actual cut is estimated to have been around 1 million bpd.
In December, OPEC-13’s average December production rose by 91,000 bpd, according to the MOMR, to 28.971 million bpd, with nearly all of the gains coming from Nigeria. But December’s OPEC-10 production – the members bound by the OPEC+ pact – was still substantially below the production quota, with the group underproducing by more than 800,000 barrels per day.
Going forward, OPEC, OPEC+, and market participants will look to China and Russia for the most immediate clues on global demand and supply.
I congratulate long timers who made profit and exited. Good for you. Support us on re-entry. Soon we will have many new investors here. At 50+ sens. I look forward to hearing from them. There was a very high volume, so the ownership have changed significantly.
Remember that around the QE anouncement BAB reaches highs. And also remember that the stock plummeted early in 2022 on the fears of not getting paid about 50 millions USD for vessels sold to Russia. Vessels were paid. Construction and pipe laying vessels in the caspians received Lukoil contracts. And we only returned to the pre Ukraine war valuation levels. There is room to go higher. Earnings, gearing, contracts nothwithstanding as they only improved ...
This is a good pump. The world is flooded with oil now. More rigs are operational. Oil reserves went up. Better quality oil reserves. Less demand for oil. Biggest user of oil is always construction, chemicals and transport. Chemicals is dead see LCTitan share price Transport is moving towards EV. EV for semis and small planes are operational Construction for China and global is way down and expected to stay pressed down. The most bullish bull agrees oil will never exceed USD100/- for 2023 This is a good pump.
IB shouted armada for 2 years given tp80c... Insist 80c.. Overall business improved, scary debt slowly payoff, the default is negligible or rather not going to happen.
This round uptrend with a strong momentum, not like previous short term goreng pattern. This could be a paradigm change for entire Oil and Gas services industry since almost a decade of downturn.
Yes true. USA in deep sh!!t trouble. Facing us$31.4 trillion debt default. Their own US Treasury Secretary, Janet Yallen warns of financial crisis if USA defaults on debt payment. (Us$31.4 trillion equal to RM134.6 trillion).
Better observe carefully. Don't fall in love with your stock..situation going to be bad. Possible Take profit first and reduce your stack, keep minimum as possible. 2c
THE energy sector faces intense pressure to drive the transition to a low-carbon economy. As a source of around three-quarters of global emissions, the energy sector has a hard road ahead to achieve global and national climate targets.
“The scrutiny is real. We have been getting a lot of questions from investors, financiers and other stakeholders on various environmental, social and governance (ESG) issues, but specifically on our climate strategy,” shares Lim Chern Yuan, CEO of Yinson Holdings Bhd.
“In terms of the energy sector, there is increasing pressure on companies to disclose our decarbonisation plans and ESG performance scorings, such as FTSE4Good Index, which require a minimum climate change score.”
This pressure is not a new development; those with international value chains have long seen this coming.
“Right from the start, when we engaged with potential international stakeholders, I remember some companies requesting for our ESG credentials. Although, at the time, it was more on social and governance themes, we had to demonstrate strong compliance and supply chain policies.”
“In the early days of our sustainability journey, we engaged with a stakeholder who placed high regard on ESG and climate disclosure as part of the due diligence process.
“Within the context of those discussions, we realised there were significant gaps in our processes and policies,” Lim admits.
“We realised that we needed to put in serious resources to improve our ESG processes. That accelerated the drive to implement the policies and procedures so we can support our commercial agenda as well as build our resiliency.”
Yinson emphasises that it is not an easy endeavour. “If you go to market, the details of your ESG initiatives and climate strategy will be asked. We need to demonstrate that we are making progress in mitigating the carbon emissions generated. The challenge is trying to manage this particular process and maintain the consistency and availability of data,” he shares.
“As our business grows, gathering this kind of information becomes increasingly challenging. It involves a range of internal and external stakeholders with different levels of sustainability maturity,” he adds.
So what can companies do to overcome this? “One way to address this challenge is by having the continuous implementation of digital solutions and applications to enhance the data collection, monitoring and verification process.
“The aim is to have a platform where ESG-related data can be consolidated and updated regularly. This will promote a standardised approach to data management and improve transparency in data disclosure.”
Yinson’s early embarkation on sustainability has definitely helped the company capture new opportunities and gain a competitive edge.
“We made history by successfully pricing Malaysia’s first sustainability-linked sukuk, issuing RM1bil in a five-year sustainability-linked sukuk wakalah,” Lim proudly states.
“This sustainability-linked sukuk issuance aligns with Yinson’s climate goals and performance. This shows how climate targets and action plans are now part and parcel of stakeholder expectations such as financial institutions, investors and potential clients,” he concludes.
CEO Action network
This article is contributed by members of the CEO Action Network
Armada if trading at PE 16X the theoretical price should be RM 1.73.
Current price is undervalued. I also believe the management already learnt from past mistakes. The debts ratio has improved a lot since last crisis. Now is a new chapter for Armada.
Lurker, you need to check your glasses or your ears are filled with plugs? When did I say or write production cost at USD0.00 ??? Please read carefully lor, least perjury in Court nanti susah.
Exxon and Shell Chairman should be held responsible, accountable and answerable for exceesive profit and greenwashing their carbon footprint that cause winter storm of negative 30+ degree F in USA.
Subpoena will be issued to Exxon and Shell Chairman for congressional hearing for them to answer the charge of crime against humanity and climate change.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
nikicheong
2,496 posts
Posted by nikicheong > 2023-02-01 14:20 | Report Abuse
RM1.00 and beyond is very much possible, however it will be predicated on fulfilling at least half of the following:
1) 1 Major contract win for FPSO (Cameia FPSO in Angola is a good bet)
2) 1 Minor FPSO contract win (either a small/medium scale FPSO 100% owned, or a large scale FPSO owned with a JV partner)
3) 1 or 2 non-FPSO contract win (either 100% owned or JV) - e.g. FSRU, FSU, FSO etc
4) "Green energy" initiatives especially for future FPSO/non-FPSO wins, and better still if current FPSOs also incorporate elements of green energy
5) Confirmation of sale or scrapping of Armada Claire FPSO
6) Confirmation of contract extension for Armada TGT FPSO in Vietnam (might only be announced in Q4 2024, but it's all but certain the contract will be extended as new wells are still being drilled in the aged TGT field)
7) Contract extension of Armada Sterling II (Q4 2024)
8) Diversification into floating CCS and other "green" structures materialises
9) Ongoing charter of the 2 SC vessels in the Caspian Sea and 1 SC vessel in Indonesia
10) First oil achievement and then full acceptance of Armada Sterling V FPSO by ONGC at the 98/2 field in India
11) Full divestment of the two remaining offshore vessels
12) Positive development at the Kraken field such as drilling of the Kraken Western flank or tieback to the nearby Bressay and Bentley fields (as this would signal long-term contract extension for Armada Kraken FPSO which is due to expire in Q3 2025)
13) No major issues at all its current producing FPSOs and FSU - Olombendo (Angola), Kraken (UK), Sterling I (India), Sterling II (India), TGT (Vietnam), Sterling III (Indonesia) and Mediterrana (Malta)
In fact, if all 13 above become a reality in the coming two years - then we shall see a strong rally to RM2.00 levels. If Bumi Armada can add a further large-scale FPSO contract win in the coming year or two (in addition to Cameia FPSO) that is backed by a long-term charter, then we might even be seeing RM3.00 levels.
Just my two cents, please share if I have missed out anything. I've been holding 350k from RM0.225 levels and added another 100k over the past year at an average price of RM0.40. I consider myself a long-term investor, but of course if there is a crazy run in price where the valuations over-run the fundamentals, I will be ready to sell.