Posted by zonefinder > 2 months ago | Report Abuse

As for why BA is still not paying any dividends even though the business has been generating loads of cash is obvious. It still has net debt of 3.65B. Also need to conserve cash for future projects. Just simple good cash management.

Posted by Felix888999 > 2 months ago | Report Abuse

Treat it as mid term sales. Post CNY stock clearance. Lai lai warehouse sales warehouse sales!

Posted by ITreeinvestor > 2 months ago | Report Abuse

for bumi, always expect the unexpected

Posted by vespa > 2 months ago | Report Abuse

big boys have their trucks backed up to unload ...

Posted by vespa > 2 months ago | Report Abuse

dropkicks need to provide forward guidance Bursa ought to take note

Posted by MM78 > 2 months ago | Report Abuse

Big impairment at the most profitable quarter or year may have its tax benefits as it reduces the taxable income for the year. Is this one of the hidden reasons for the timing ?

Posted by Pakcik Kiah > 2 months ago | Report Abuse

Unending impairments.

Posted by zonefinder > 2 months ago | Report Abuse

Taxable income is not base on accounting policy on depreciation but on capital allowances on that particular asset...

Posted by sheep > 2 months ago | Report Abuse

tomorrow another bloody day..wakaka

Posted by rohank71 > 2 months ago | Report Abuse

#zonefinder, you are right.

Posted by zonefinder > 2 months ago | Report Abuse

Also on whether the Income tax dept recognizes this concept of PV Project cash value. If capital allowance for the asset has been fully claimed in the first few years, then the former has no impact on taxable profits

Posted by tallman > 2 months ago | Report Abuse

This Armada how many times already, QR boom, impairment, machine malfunction..... never ending story to tell bilis

Posted by nikicheong > 2 months ago | Report Abuse

Regardless, the depreciation in the upcoming quarters will be reduced. As such, barring any unforseen circumstances, FY2024 might just be the most profitable year, with each quarter's profits above RM250mil.

Let's see where this takes us. I do believe short of a disaster, long-term investors will still be rewarded at current share price levels (assuming zero new business other than extension contracts for existing projects).

Posted by nikicheong > 2 months ago | Report Abuse

Also, I have checked in with Navigator Gas, and according to them, there will be an update on the Bluestreak CO2 JV when their Q4 2023 results are released in the 2nd half of March 2024.

Posted by nikicheong > 2 months ago | Report Abuse

Another update, the Mumbai FSRU project is officially DEAD.

There is no mention of it in the Bumi Armada investor deck, and also SP Energy has removed the project from the "ongoing projects" section of their website.

Posted by curiousq > 2 months ago | Report Abuse

sifu said impairment, depreciation .... are on-going practice of this type of counters, bcos ware and tare of oil digger mechinaries are fast going

Posted by zonefinder > 2 months ago | Report Abuse

You are right, Niki. Not only profits but cash flow will be gangbusters as well.

Posted by nikicheong > 2 months ago | Report Abuse

@Zonefinder, cashflows will not change due to this "impartment" as it is non-cash in nature. However, the future profits are likely to be inflated at the cost of the tanking we saw today.

Posted by zonefinder > 2 months ago | Report Abuse

Once the share price stabilizes over next couple of days, time to load up for the long term investors.

Posted by Blue Tulip > 2 months ago | Report Abuse

Another Serba Dinamik and Sapura Energy in the making!

Posted by Felix888999 > 2 months ago | Report Abuse

This proven you don't know how to read the QR report.

Posted by Blue Tulip > 7 minutes ago | Report Abuse

Another Serba Dinamik and Sapura Energy in the making!

Posted by zonefinder > 2 months ago | Report Abuse

Niki, the cashflow is not impacted by "impairment" or depreciation but is affected by the fact that the loan for this project has been fully paid up....the cashflow for this project in 2024 is dramatic but overall has already been projected base on the expected debt reduction for BA as a whole.

Posted by Felix888999 > 2 months ago | Report Abuse

I hope Armada Sterling V won't drop another bomb shell from the final acceptance. 🤣

This naughty stock have to lock profit from time to time. Very very naughty 🤣🤣🤣

Posted by lloydlim > 2 months ago | Report Abuse

Wow!

Posted by nikicheong > 2 months ago | Report Abuse

Zonefinder, the Kraken debt had been repaid for some time now. I recall it was repaid in full in Q2 2023.

Posted by 8dragon > 2 months ago | Report Abuse

Next 0.48...

Posted by Macgyver111 > 2 months ago | Report Abuse

From 0.60 to 0.50...boom!..adoi!

Posted by zonefinder > 2 months ago | Report Abuse

Niki, you are right...fully paid up March 2023. Kraken project wise, the full benefit cash wise is 2024. Any case, we are looking at BA not just Kraken. Accounting profits will be shitty from 2025 if we do not get new projects to offset the drop in Kraken revenue of 70% during the extension tenure.

Posted by Felix888999 > 2 months ago | Report Abuse

This guy copy and paste the same statement every QR.

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

Posted by nikicheong > 2 months ago | Report Abuse

Felix, I can't seem to find him saying that in the past.

Posted by Felix888999 > 2 months ago | Report Abuse

Haha haha that statement sounds very familiar. 😂

Posted by ITreeinvestor > 2 months ago | Report Abuse

this is the first time Gary talk about enhance shareholder value & possible corporate activities

Posted by nikicheong > 2 months ago | Report Abuse

Maybe Gary knows something we don't. Tank the share price, let his insiders buy, then announce some good news.

Posted by Felix888999 > 2 months ago | Report Abuse

After lesson learnt from Kraken shut in incident, any bad news just throw to the market. You got chance to buy it back.😎

Posted by nikicheong > 2 months ago | Report Abuse

Bumi Armada Debt Evolution:

1) Table: https://i.ibb.co/5x8RfWW/armada-23q4-table.png
2) Time Series: https://i.ibb.co/zSdkYkD/armada-23q4.png

Posted by Robert Waters > 2 months ago | Report Abuse

I do NOT remember Greedy Gary showing any concerns for shareholders. He was always preoccupied with the personal gain - free or subsidized shares for himself. He never even cared to exercise basic decency. Special resolutions were made for HIS SOLE benefit, not including others in management.
And as I do not trust this greedy clown, I am not going to let him induce me to sell.
I will wait a bit.
We shall see what his scheme is all about.
Sure not about concerns for shareholders.

Posted by RJ87 > 2 months ago | Report Abuse

U haven’t see the real shitty CEO Leon Harland. RM18B 5 years ago.


Under Gary and Luke, dropped to 3.5B. Don’t complain liao.

Posted by nikicheong > 2 months ago | Report Abuse

The more I think about the depreciation, the worse it seems to be. I recall reading previously that vessels usually see greater depreciation in the firm period, such that by the option period, the depreciation reduces.

Why then based on the analyst presentation slides, are the depreciation for Kraken constant throughout the firm + option period? Makes zero absolute sense. I've never heard of Yinson or any of the global FPSO giants facing this issue.

I wonder why this alternative method is not used: https://i.ibb.co/qkwhB79/b-armada-alternative-scenario.png

Posted by Joshua Lim Cheng Ern > 2 months ago | Report Abuse

Hi, may I know how much of the Kraken contributes to group revenue? Assuming worse case scenario after 2025 no new contract, and it drop to 30% of current revenue, how much damage it will cost the group.

Also, it seems that Armada will have 7 FPSO/FSU combined, we can only assume that this type of impairment might happen in the future to the other 6 (since Kraken impairment had happened in this quarter)

Posted by rohank71 > 2 months ago | Report Abuse

the 3 under JV is not consolidated so only 4 and soon 3 than 2 if we discount Karken.

Posted by nikicheong > 2 months ago | Report Abuse

Weighted average term loan interest rate as at 31 Dec 2023: 8.67%
Weighted average term loan interest rate as at 30 Sep 2023: 8.75%

Another small but positive thing going forward. Debt servicing cost will now slowly start going down assuming no change in US Fed rates. Shows that the loans with the highest interest rates are being paid down / refinanced, which is sound credit management.

If the US Fed cuts rate, the servicing cost will go down even faster. On the other hand, if the US Fed increases rate, the debt servicing cost will increase once again.

Posted by rohank71 > 2 months ago | Report Abuse

niki, I share ur frustration with the bad management. even the board must be taken to task. when u have an accounting policy, u should stick till the end and not move the goal post halfway. credibility down the drain.

Posted by rohank71 > 2 months ago | Report Abuse

however, as far as bz is concerned, all is good. let hold on and buy more at 50 sen.

Posted by nikicheong > 2 months ago | Report Abuse

@Joshua, the Kraken contract will definitely be extended for some years. Safe to say, at least it will be extended for another 3 - 5 years, even in the absence of any new wells being drilled whatsoever. Whether it gets extended until 2042 is a question mark though. The Kraken field is still producing >20k barrels per day and additional drilling has been budgeted for into the field operator's FY2025 planning.

Given that Enquest has indicated it will exercise 1-yearly extensions to the charter, the question then really is, how long will they continue exercising those extensions for? Per their last update, the plan is still until early 2040s. However, Enquest can terminate the contract in the option period with a one year advance notice, and will need to pay for demobilization costs.

Posted by Joshua Lim Cheng Ern > 2 months ago | Report Abuse

In the slides presentation, next possible impairment will be Armada TGT 1 FPSO and Armada Sterling II FPSO (50% JV). The rest is under contract for many years to go.

Posted by Joshua Lim Cheng Ern > 2 months ago | Report Abuse

@nikicheong Thank you for the insight!

Posted by nikicheong > 2 months ago | Report Abuse

@Joshua, Armada TGT1 FPSO will unlikely face such impairment, as it is already at the end of its option period. Highly likely the carrying value of the FPSO is almost next to nothing.

As for Armada Sterling II, it is hard to say, but again, unlikely. There was already some adjustment done in the past for Armada Sterling II. Even if any, the impact should be a lot smaller as it's a significantly smaller project, and Bumi Armada only has a 50% stake.

Posted by Asghlk > 2 months ago | Report Abuse

just realize armada kraken reported 470M impairment loss in 2018

Posted by rohank71 > 2 months ago | Report Abuse

the impairment simply says @ past Armada has miss led with 50M extra paper profits.

Posted by rohank71 > 2 months ago | Report Abuse

that's why I always say its abt cashflow... don't look at NTA to buy a stock.