Posted by CHLEONG888 > 2023-05-24 16:51 | Report Abuse

Any bad news? Why dropping so much?

Posted by serpent100 > 2023-05-24 17:21 | Report Abuse

Qr bye bye kot

Posted by nikicheong > 2023-05-24 17:40 | Report Abuse

Judgement at 12.35pm tomorrow!

Posted by Bon888 > 2023-05-24 20:03 | Report Abuse

New project announcement is the most important. QR report expected slightly better than last quarter.

Posted by nikicheong > 2023-05-24 21:01 | Report Abuse

Excluding one-off gains/losses, the quarterly profit should be within the range of RM200mil to RM220mil. Anything below RM180mil will be a disappointment.

Posted by Jerichomy > 2023-05-24 22:22 |

Post removed.Why?

Posted by RISK8888 > 2023-05-24 22:29 | Report Abuse

Tomorrow QR?

Posted by jasongks > 2023-05-25 09:51 | Report Abuse

"Bon88 - New project announcement is the most important."
Unlikely to have new project
announcement

Posted by Bon888 > 2023-05-25 10:03 | Report Abuse

Jason, why you said unlikely?

Key FPSO players already fully booked with on going projects. Armada has the capacity and ability to run new project.

Posted by nikicheong > 2023-05-25 10:05 | Report Abuse

Unlikely to announce new project at the AGM, because new projects have to be announced as soon as they are finalized, unless they finalize the new project today, which is quite unlikely.

Posted by nikicheong > 2023-05-25 12:24 | Report Abuse

Good luck boys, and see you guys at the AGM. Please ask and ask, tons of questions.

Posted by Bon888 > 2023-05-25 13:02 |

Post removed.Why?

Posted by Bon888 > 2023-05-25 13:03 | Report Abuse

https://www.klsescreener.com/v2/financial-reports/view/722667

Posted by Bon888 > 2023-05-25 13:05 | Report Abuse

Nice strong management !!

Cash flows remained robust with RM288.3 million generated from operating activities in Q1 2023, which was used to further deleverage the balance sheet and reduce interest costs for the Group. The project finance loan for Armada Kraken was fully repaid in March 2023, over 3 months ahead of schedule. The future firm orderbook at the end of Q1 2023 amounted to RM11.1 billion, with additional optional extensions of up to RM9.3 billion.

Posted by nikicheong > 2023-05-25 13:08 | Report Abuse

Reported Net Profit to Shareholders: RM201.0m

Adjustments:
Gain on Disposal of JV: -RM0.3m
Reversal of impairment: -RM1.3m
Unrealised FX loss: +RM6.0m
Loss on hedging: +RM1.7m

Core Net Profit: RM207.1m

Posted by nikicheong > 2023-05-25 13:10 | Report Abuse

The results do not yet factor in the sale of Armada Claire FPSO and the final OSV, which will only be booked in Q2 2023 results. Looks like there will be a minor gain on disposal of around RM10m to RM15m from these.

Posted by Bon888 > 2023-05-25 13:14 | Report Abuse

Debts reduced to RM 5.0 billion. Very healthy now.

Posted by nikicheong > 2023-05-25 13:15 | Report Abuse

WE NEED ONE FREAKING PROJECT!!!

Posted by nikicheong > 2023-05-25 13:16 | Report Abuse

Just one project and Bumi Armada will take-off. Everything looks good and in order otherwise.

Please be hard and ask probing questions during the AGM

Posted by nikicheong > 2023-05-25 13:18 | Report Abuse

Reported Net Profit to Shareholders: RM201.0m

Adjustments:
Gain on Disposal of JV: -RM0.3m
Reversal of impairment: -RM1.3m
Unrealised FX loss: +RM6.0m
Loss on hedging: +RM1.7m

Core Net Profit: RM207.1m

NOTE: There is also a small gain on insurance claim of RM0.4m. Stripping this off, the core net profit is RM206.7m.

Posted by Bon888 > 2023-05-25 13:19 | Report Abuse

Yes One more Freaking Project will let the price flying to the moon

Posted by serpent100 > 2023-05-25 13:37 | Report Abuse

Hopefully can reach P E 8.xx

Posted by Bon888 > 2023-05-25 13:39 | Report Abuse

Serpent you are too conservative. Should target PE 15, industry standard.

Posted by charlie chia > 2023-05-25 13:45 | Report Abuse

3.30 pm AGM

Posted by Bon888 > 2023-05-25 13:51 | Report Abuse

Yinson 10 billion debts, Armada 5 billion debts. You see which one safer?

Posted by nikicheong > 2023-05-25 13:53 | Report Abuse

Armada's P/E ratio should be in the 6x range for now. A higher P/E ratio will only be warranted if there is future growth baked into the share price. At the moment, minimal (or maybe even zero) future growth is baked-in as the company has thus far failed miserably to secure new FPSO contracts. If we get one or two decent FPSO contracts, expect to see the share price shooting up to 10x - 15x P/E.

Posted by Gabriel Khoo > 2023-05-25 13:54 | Report Abuse

Net debt 4.3B

Posted by nikicheong > 2023-05-25 13:55 | Report Abuse

@Bon888 don't simply compare. Yinson's debt are mostly secured loans tied to specific projects.

Posted by nikicheong > 2023-05-25 13:56 | Report Abuse

A neutral share price for now should be within RM0.70 - RM0.80 range

Posted by Bon888 > 2023-05-25 14:04 | Report Abuse

Secured loan still a debts. Any contract cancellation will have a big impact. This is the painful lesson Armada had gone through.

Posted by Gabriel Khoo > 2023-05-25 14:33 | Report Abuse

Yinson. Too big to fail. One project hitcup will stretch their balance sheet. Thats why you cant give high valuation for yinson. To be fair. They run all projects concurrently not progressively.

Posted by Gabriel Khoo > 2023-05-25 14:35 | Report Abuse

The project finance loan for Armada Kraken was fully repaid in March 2023, over three months ahead of schedule

Posted by nikicheong > 2023-05-25 15:38 | Report Abuse

My man Gary, been seeing him every year now

Posted by estk > 2023-05-25 15:54 | Report Abuse

Would appreciate if you guys can provide some input to the AGM today. Thanks in advance

Posted by nikicheong > 2023-05-25 16:06 | Report Abuse

Management sounding upbeat, CFO says Bumi Armada is "match fit" for new projects.

Posted by vespa > 2023-05-25 16:14 | Report Abuse

super news

Posted by Zhuge_Liang > 2023-05-25 16:17 | Report Abuse

Good quarter result.
FPSO business will do well in the next 3 years.
Hopefully, Armada can get at least 1 of FPSO in 2023.
I also hope Armada will perform well in 2023.

Posted by nikicheong > 2023-05-25 16:43 | Report Abuse

"Some notification coming up next month"

Posted by nikicheong > 2023-05-25 16:47 | Report Abuse

Looks like they're working on multiple new projects, especially on the green energy side. The CFO was teasing a lot saying Bumi Armada is "match fit" on numerous occasions.

The ONGC FPSO is ready for first oil but the delay is from ONGC and its subsea contractors. Management in discussion on the financial penalty of the delay.

The Mumbai FSRU project is still progressing but no urgency as LNG prices have skyrocketed. Alternative designs have been shared

Posted by nikicheong > 2023-05-25 16:52 | Report Abuse

The RM1.5bil sukuk due in September will be refinanced when the time comes - whether in MYR or USD, to be assessed in Q1 next year

The growth plan for the future will be known throughout the rest of the year heading into 2024. CEO mentioned these projects, study, discussions and awards take a long time to materialise

Posted by Gabriel Khoo > 2023-05-25 17:04 | Report Abuse

Thanks Nic.

Posted by Robert Waters > 2023-05-25 21:44 | Report Abuse

Resolution no. 8 today was NOT widely supported. Same as last year.
50% shareholders and 32% of shares are against 'free giveaway' of bonus shares to the CEO of BAB. I am also against it. A gift of 1.5 mln every year is excessive.

Posted by nikicheong > 2023-05-25 23:34 | Report Abuse

This will be the last time I share trend analysis on Bumi Armada's debt situation, as the company is out of the woods and no longer has any debt concerns.

Table: https://i.ibb.co/R24Ch1m/armada-23q1-debt.png

Time series: https://i.ibb.co/Csz6vBL/armada-23q1-ts.png

Posted by Jerichomy > 2023-05-26 00:12 |

Post removed.Why?

Posted by nikicheong > 2023-05-26 07:53 | Report Abuse

Please share research reports. Especially interested in reading the report from CIMB.

Posted by Gabriel Khoo > 2023-05-26 08:58 | Report Abuse

Good set of 1Q23 results when excluding taxes 1Q23 core net profit of RM198m was 13% lower qoq mainly due to the absence of a tax writeback that was seen in 4Q22; without this item, 1Q23 core net profit would have declined only 5% qoq. This residual decline was caused by lower FPSO Kraken uptime vs. 4Q22, and lower variation order revenues for the FPSO Olombendo. Furthermore, BAB had completed its Caspian Sea subsea construction jobs in 4Q22. These factors were partly mitigated by higher engineering services revenues, as BAB performed more of such services for its associate company in India. Against 1Q22, 1Q23 core net profit was 9% higher yoy because of higher Kraken uptime. BAB ready to take on new contracts; an award may be near Looking forward into 2Q23F, BAB will complete the sale of the laid-up FPSO Armada Claire for US$20m, and also complete the sale of its final remaining OSV; we forecast exceptional disposal gains of c.RM50m. More importantly, BAB is looking forward to the project award by TotalEnergies of an FPSO earmarked for the development of the Cameia and Golfinho discoveries offshore Angola. According to a Mar 2023 report by industry newspaper Upstream, BAB had already reserved a slot with an offshore yard in Singapore, due to the tight availability of yard space, to prepare for the potential award of the Cameia FPSO job. BAB also confirmed at its analyst briefing this afternoon that it had tendered for various other FPSO jobs, although it is careful not to take more than two large jobs simultaneously in order to not overstretch its resources. After three years of stable operations by BAB’s Kraken and Olombendo FPSO assets, BAB has successfully degeared itself, with the 1Q23 net gearing at only 0.82x vs. 1Q20’s 2.95x. BAB believes, and we concur, that it is ready for growth, and ready for new project intake. Target price uplift from assumed EPCIC award, plus lower Ke We incorporate an 11 sen uplift to our SOP valuation by assuming that BAB will win the TotalEnergies’ FPSO Cameia EPCIC project at an assumed capex of US$1.5bn and 10% margin. As this is a purely EPCIC project, the risk of a rights issue is low, in our view. We also reduce our cost of equity assumption from 16% (using beta of 2) to 13% (using beta of 1.5), as the risks surrounding BAB are much lower than in previous years. If BAB wins this award, we expect its share price to re-rate. BAB is also bidding for more Caspian Sea subsea construction work this year. Downside risks include an unexpected and material decline in oil prices that may cause a pause in the pace of upstream FPSO capex spending by the oil majors and national oil companies, impacting BAB’s future growth potential.

Posted by Gabriel Khoo > 2023-05-26 08:58 | Report Abuse

Cimb

Posted by Gabriel Khoo > 2023-05-26 09:00 | Report Abuse

I feel very comfortable with the current management.

Posted by Gabriel Khoo > 2023-05-26 09:04 | Report Abuse

We raise our target price from 69 sen to 87 sen for two reasons. 1. We reduce our cost of equity assumption from 16% (using beta of 2) to 13% (using beta of 1.5), as we believe the risks surrounding BAB now are much lower than in previous years due to several years of stability in the operations of FPSO Kraken and FPSO Olombendo. 2. We also incorporate an 11 sen uplift to our SOP by assuming that BAB will win one EPCIC contract at an assumed capex of US$1.5bn FPSO project at a 10% margin. BAB has been identified by industry newspaper Upstream as the most likely candidate to win TotalEnergies’ Cameia FPSO project to develop the Cameia and Golfinho discoveries offshore Angola. As this is a purely EPCIC project, the risk of a rights issue is low, in our view. Potential re-rating catalysts include continued strong results from the FPSO segment, improving activities in the oil and gas industry as a result of high oil prices, and the improved prospects for BAB to secure longer-term and more substantial work for its two Caspian Sea pipelay vessels. Also, we expect TotalEnergies to award the commercial deal for the FPSO Cameia sometime this year. Meanwhile, BAB may be bidding for additional FPSO projects. We believe that BAB will avoid a rights issue for any future FPSO project wins, as BAB may opt for JV partnerships for new FPSO projects that may make a rights issue unnecessary or rely on upfront supplier funding that can be material. Also, BAB had said it is not interested in taking on project work for more than two large FPSOs at the same time, in order to better manage resource availability.

Posted by Gabriel Khoo > 2023-05-26 09:04 | Report Abuse

2nd part of cimb report