Posted by nikicheong > 2 months ago | Report Abuse

There are some funny hidden losses here. If you look at share of results for JV for “Others” segment in Q4 2023 (Page 15), there is a staggering loss of RM56mil.

This likely is related to front-loaded expenses for the Akia JV and/or Bluestreak JV. Good thing cause it shows there is some progress, though not mentioned explicitly.

Posted by OTB > 2 months ago | Report Abuse

I take a quick look into the results.
Ebitda = 386 million profit ( historical high operating profit).
Impairment loss = (514) million.

If without impairment loss, there is still an operating profit.
Thank you.

Posted by nikicheong > 2 months ago | Report Abuse

There is also this statement: “… resolution of outstanding issues with a charterer which resulted in higher revenue and a reversal of accrued costs.”

No clarity on what this refers to!

Posted by Balian de Ibelin > 2 months ago | Report Abuse

shud have sold when at 60 sen, was there a lesson there somewhere?
INSAS all over again.
Got profit take profit 😁

Posted by nikicheong > 2 months ago | Report Abuse

There is also reversal of impairment of RM36.4mil. No information about this whatsoever.

So many hidden things that are not addressed by management.

Posted by ITreeinvestor > 2 months ago | Report Abuse

Moving forward, we continue to explore ways to enhance shareholder value
including new projects and possible corporate activities.”

Posted by ITreeinvestor > 2 months ago | Report Abuse

Does this mean bonus share, dividend in near term?

Posted by Robert Waters > 2 months ago | Report Abuse

HUGE loss and impairment like the one during the worst days of Kraken delays.
Greedy Gary in utter deparation starts talking future projects. Only now he realizes that something needs to be done ?
_______________________________________________
Moving forward, we continue to explore ways to enhance shareholder value including new projects and possible corporate activities.”

Posted by nikicheong > 2 months ago | Report Abuse

Roughly rm250mil reduction in net debt.

Posted by nikicheong > 2 months ago | Report Abuse

Everything looks good except for the impairment. Too many impairments done for Kraken and SC vessels. Now all research houses will mark down target prices cause you never know when more impairments are due. Especially for Armada Olombendo.

Posted by OrlandoOilWeb3AI > 2 months ago | Report Abuse

Best hope for the price is existing shareholders see eye to eye that past is past

Posted by nikicheong > 2 months ago | Report Abuse

As investors, we must discount some of Bumi Armada’s net asset value as it might be overstated.

Posted by Felix888999 > 2 months ago | Report Abuse

Aiyoh hope to get another Ang Pow, look like burst already. Luckily locked an Ang Pow before CNY.

Posted by Balian de Ibelin > 2 months ago | Report Abuse

The market value of oil assets are going down more rapidly than depreciation budgeted for.
Impairments are provided when 1) asset is not used or 2) when projected revenue profitablility returns are way less than terminal asset values plus scrap values.
Likely many oil assets will be permanently locked down forever.

Posted by s3phiroth > 2 months ago | Report Abuse

Limit down inkambing!

Posted by nikicheong > 2 months ago | Report Abuse

I won’t be surprised if this is just a blip. After all the impairment charges are completely non-cash in nature. The cash generating power of the business was the best it has ever been in Q4 2023

Posted by nikicheong > 2 months ago | Report Abuse

Operating cash flow before changes in working capital for Q4 2023 was a staggering RM455mil. By far the highest ever in any given quarter.

Posted by ITreeinvestor > 2 months ago | Report Abuse

and yet greedy Gary still not willing pay out any single cent for dividend

Posted by nikicheong > 2 months ago | Report Abuse

Core net profit to shareholders (after adjusting for net impairment): RM312.4mil

Posted by nikicheong > 2 months ago | Report Abuse

The investor presentation goes into some detail on the impairment adjustment. On the whole, I think it’s still a positive quarterly results.

Posted by nikicheong > 2 months ago | Report Abuse

www.bumiarmada.com/wp-content/uploads/2024/02/Q4-2023-Results_IR-deck_Full-Version_vF.pdf

Posted by ITreeinvestor > 2 months ago | Report Abuse

now the question will be, what about for the rest of FPSO which firm charter ending soon

Posted by nikicheong > 2 months ago | Report Abuse

ITreeinvestor none else ending soon, so no other near term risk of the same thing recurring. Next is still 3 years away and is a JV vessel

Posted by nikicheong > 2 months ago | Report Abuse

What a bloodbath!

Posted by ITreeinvestor > 2 months ago | Report Abuse

Sterling II end Mar24

Posted by Ninja _07 > 2 months ago | Report Abuse

Whoaaa...! Drop to 0.54

Posted by MM78 > 2 months ago | Report Abuse

Market reactions are not as bad as I was expecting.

Posted by sheep > 2 months ago | Report Abuse

Cut lost cut lost buy back at 48 sen..

Posted by MM78 > 2 months ago | Report Abuse

may need 2-3 quarters of good results to restore market confidence .

Posted by rohank71 > 2 months ago | Report Abuse

look at cashflow

Posted by rohank71 > 2 months ago | Report Abuse

BA is not an asset company la.. asset is just accounting. what's important is the cashflow and debt outstanding. as long as Cashflow is strong why worry abt asset. I rather BA write offball asset one time and just collect money without anymore depreciation.
even company got asset and no cashflow who wants. BA earned 1.5B cashflow in 2023.. isn't that good enough?

Posted by rohank71 > 2 months ago | Report Abuse

at 50 buy

Posted by super911 > 2 months ago | Report Abuse

One impairment all naik car

Posted by rohank71 > 2 months ago | Report Abuse

Karken failure has cashflow impact hence the collapse. this is just accounting impact on FA.

Posted by nikicheong > 2 months ago | Report Abuse

No Rohan, Kraken failure has no impact. This is unrelated. Kraken failure was recognized via lower revenue at that point in time already.

Posted by rohank71 > 2 months ago | Report Abuse

the decision to impair asset now is good so the future profit will b strong.

Posted by rohank71 > 2 months ago | Report Abuse

niki, Karken failure impacted the cashflow hence price dropped to 42 sen.. this is just accounting impact not cashflow.

Posted by Jonathan39199 > 2 months ago | Report Abuse

How the will profit be affected moving forward after the firm period ends?

Posted by rohank71 > 2 months ago | Report Abuse

let weak holders sell off.. which company has 1.5B cashflow per annum... that itself gives BA a strong footing

Posted by rohank71 > 2 months ago | Report Abuse

hope goes to 50 and we long term holder can load up..

Posted by stainlyho37 > 2 months ago | Report Abuse

taking some now.!!..operation look positive..impairment not too worry...as only on assets...

Posted by nikicheong > 2 months ago | Report Abuse

Still the impairment seems silly. Surely the carrying value should be conservative. I don’t see other FPSO operators facing this issue. Simply means we as investors need to be wary that Bumi Armada’s FPSOs carrying values are likely overstated on their balance sheet. Especially Armada Olombendo, which is their golden goose. I shudder to think what the impairment for that would be come 2029.

Posted by rohank71 > 2 months ago | Report Abuse

yes niki, very silly unless the management has other agenda. why now, when they knew it all along..credibility issue.

Posted by MM78 > 2 months ago | Report Abuse

Impairment means bringing the depreciation costs forward earlier hence future depreciation costs are going to be lower. Cash flow is not immediately affected negatively next few quarters before Kraken new extension contract kicks in after 1 April 2025. Armada still has about a year before the management finds new source of income though I cant see where can they find it.

Posted by rohank71 > 2 months ago | Report Abuse

Well said MM78

Posted by ITreeinvestor > 2 months ago | Report Abuse

this is the fact : Impairment means bringing the depreciation costs forward earlier hence future depreciation costs are going to be lower

Posted by zonefinder > 2 months ago | Report Abuse

A brief study of the financial deck given by Niki reveal that the "Impairment" is not what we normally understand as write down in value of the FPSO. What it is here is the adjustment needed to reflect the difference between the PV project cash value of the asset vs the NBV. The former is sensitive to prevailing capital cost ie interest rates while NBV is calculated base on the accounting policy on depreciation ie straight line. I suspect that they need to make this adjustment due to accounting convention ie has to provide for any known adverse impact. Note however that the cash flow for the next few quarters up to expiry of the Firm period will be a real shit load of cash as the Project loan for this FPSO has been fully paid up in March 2023. Even the cash flow for this project will more than during the first 7 years of the Firm period as there is no more finance cost ( for this FPSO) involved for the "Extension" period.

Posted by zonefinder > 2 months ago | Report Abuse

Whether there is any further such "Impairment" charges will depend on prevailing capital cost. However this is probably unlikely as likelihood of interest rate increases is low ...in fact it is expected to reduce...

Posted by zonefinder > 2 months ago | Report Abuse

What is now needed is for Project wins.

Posted by vespa > 2 months ago | Report Abuse

exhausted investors dumping