BUMI ARMADA BERHAD

KLSE (MYR): ARMADA (5210)

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Last Price

0.54

Today's Change

-0.01 (1.82%)

Day's Change

0.535 - 0.555

Trading Volume

15,767,300

Prices
Date Open High Low Close Change Volume
Discussions
46 people like this. Showing 50 of 71,378 comments

rohank71

soon once all the confusion is over... it will be back above 60. this who have sold yesterday should accumulate now.

3 days ago

rohank71

cashflow is most important not P&L

3 days ago

rohank71

if not for the impairment..BA would be now above 63.

2 days ago

sammmy

After sell down yesterday, the share price much more easy to push up now. Those who collected at 0.515-0.530 , easily 10% profit in near future

2 days ago

zonefinder

Look at it another way, Rohank, the impairment is giving another chance for long termers to load up at better prices..

2 days ago

zonefinder

Gabriel, thanks for the comprehensive explanation...Glad to see more robust and substantive discussions here instead of the shitty pot shots ...cheers!

2 days ago

Robert Waters

Zonefinder, explanation is from Raymond Yapp. The O&G Analyst #1 from Singapore (before Malaysia). Grateful for Raymond to include and Mkt888 to provide link.
The analysis from superficial bankers can be skipped.

2 days ago

zonefinder

Thanks Robert, I realized it after I read Raymond's analysis. Thought Gabriel was an insider..haha..

2 days ago

OrlandoOilWeb3AI

IB consensus impairment doesn't matter

Then why do it? Why do the impairment?

2 days ago

rohank71

my bad I was overly Conservative... wanted to buy closer to my last buying price at 48 and 49...anyway congrats to all those who bought and took the bear by its b*lls. let's see it break 63 soon.

2 days ago

nikicheong

From RHB's report: Bumi Armada entered into a non-binding agreement to engineer a carbon capture injection
system for a gas field in Indonesia.

2 days ago

zonefinder

Orlando, blame it on the accountants. To provide a true and fair view which sometimes screws perception in the market.

2 days ago

Gabriel Khoo

Nick how do you interpret the last sentense of this from RHB
e sizeable impairment on Armada Kraken caught us by surprise, and management explained that it was mainly due to the value-in-use (VIU) of this vessel falling significantly below its net book value (NBV) approaching the end of firm period (Mar 205), coupled with a hike in the discount rate in arriving at the VIU. It was highlighted that there has been no change to contracted cash flows and the recent transformer failure did not affect the VIU. BAB is currently in talks with the client on the potential extension and the renewal rate could be 50-70% lower than its firm contract. T

2 days ago

OrlandoOilWeb3AI

Impairment is done using future cash flow

This impairment review requested by the banks for refinancing facilities?

2 days ago

OrlandoOilWeb3AI

The only way impairment doesn't matter is because carrying value is the one which is wrong

2 days ago

nikicheong

Gabriel, the least rate will drop by nearly 70%, that much is certain.

1. Per Enquest's last operational update: "The Group also expects unit margins to improve as the Kraken FPSO lease rate reduces by c. 70% from 1 April 2025, while the culmination of major projects at SVT will crystallise significant operating cost reductions and emission reductions in 2026 and beyond."

2. Basic calculation from the contract values:

Firm: USD1,400mil for 8yrs = USD175.00mil/annum
Option: USD924mil for 17yrs = USD54.35mil/annum

54.35/175 = 31.1% (i.e. reduction of 68.9% which matches Enquest's statement)

2 days ago

OrlandoOilWeb3AI

Give the management the benefit of doubt that there is no element of BS

Then it is lousy management

2 days ago

OrlandoOilWeb3AI

If carry value is wrong means depreciation is wrong

If depreciation wrong means the previous QR profits overstated

2 days ago

OrlandoOilWeb3AI

This impairment if 30m 50m is ok... but the amount is so big

Missed the elephant in the room?

2 days ago

OrlandoOilWeb3AI

Hope the IBs back up their Doesn't Matter by asking their customers to buy

2 days ago

EatCoconutCanWin

this counter loss money, who is the idio push up ...

2 days ago

Rwan88

Trap maybe

2 days ago

ITreeinvestor

On a positive note, its Armada Sterling V 98/2 has achieved first oil in January 2024 and is looking forward to achieving first gas by April 2024

2 days ago

marlboroman2

As long as there is no impairment on Brent Oil price at USD 80 per barrel, BA should theoretically head on to 80 sens TP.

2 days ago

Robert Waters

There is certain truth to it that the public should know when net book value of the asset exceeds current value in use due to the higher interest rates. This discounting of Future Payments at 8.5% result in lower valuation. The interest rates changed, hence the disclosure. Nothing to do with option charter - it was known for years.

However, Greedy Gary made a spectacle out of it. He could have kept it in asset valuation rather than allowing to crash earnings. But that is Greedy Gary, he has only one concern, his free shares. Price fluctuation do not concern him.

2 days ago

Robert Waters

My thanks to marlboro man. Let us make things simple. Those depreciation models give investors headache. Me inclucing.
To RM0.80 target price based on our internal, i3 forum projection.

2 days ago

marlboroman2

Yes, Robert, life is suppose to be simple, and that triangle drawing (VIU vs NBV) with yellow shades confuses my simple mind i.e. can't make any sense of it. Anyway, cash is king and BA's cash flows looks solid so we continue to wait and see

2 days ago

proudbeggar

Just like that, it was announced a half billion (RM 514.4m) write off or write down in the value of Kraken & SC assets, apparently due to " caused by accounting depreciation recognised
on a straight-line basis and the reduction in the charter revenue during the optional
extension period" which was already known from the beginning and therefore should have been provided for. This half a bln bucks 514m writeoff is more than half the pre-adjusted 4 quarters profit of 883 ( +386 4qtr 497 b/f 3qtr). Not a very plausible answer.

2 days ago

proudbeggar

And it will go into the official BAB 2023 Annual Report. "What kinda depreciation accounting is this " should be asked by the external Auditors.

2 days ago

Felix888999

Out of sudden the BA accountant realized the straight line depreciation method is wrong after running that FPSO for 8 donkey years. All of their FPSOs could have the same problem.

Mana sekolah this accountant? Accountant from ah beng workshop?

2 days ago

nikicheong

Shoplot accountants the lot of them.

Need to ask their CFO who pronounces millions as "minions"

2 days ago

Felix888999

Ba-ba-ba-ba-ba-na-na
Ba-ba-ba-ba-ba-na-na
Banana-ah-ah
Potato-na-ah-ah
Banana-ah-ah

Adui Potato and Banana accountants we have in BA.

Posted by nikicheong > 4 minutes ago | Report Abuse

Shoplot accountants the lot of them.

Need to ask their CFO who pronounces millions as "minions"

2 days ago

Robert Waters

This devaluation of vessel applies to every bond. When interest rate changes, bond can lose half of its value.
That is why they declare them 'held to maturity' and do not mess with the bond market value at the moment of given interest rate.

That is what BAB should be doing. Avoid scaring investors. Stick to project linear data model.
You would only change it if you want to sell the vessel (or bond), or get financing for it.

2 days ago

Felix888999

Buckle your sitbelt for another dumping if Armada Sterling V not able to get the final acceptance. The FPSO still not running at full capacity because of client`s wells readiness. You know typical client behavior, Taichi it to the vendor first. ๐Ÿ˜‚๐Ÿ˜‚๐Ÿ˜‚


This company don't know no luck or management problem.

Posted by ITreeinvestor > 1 day ago | Report Abuse

On a positive note, its Armada Sterling V 98/2 has achieved first oil in January 2024 and is looking forward to achieving first gas by April 2024

1 day ago

nikicheong

Some bad news. According to my sources, Armada V Sterling is not going to attempt the final acceptance test anytime soon. There are still a lot of things pending.

For starters, the gas train has yet to be commissioned.

Final acceptance preparations will only begin after that.

They only said that acceptance will happen this year, maybe even towards the end of the year only.

1 day ago

nikicheong

Some of the analysts were quite optimistic that acceptance will happen in April 2024, zero chance of that. Earliest looks to be Q3 2024 if all goes to plan.

1 day ago

rohank71

as I have repeatedly say ASV is just an associate. the Q4 numbers is without ASV...yet BA achieved highest operating profit. ASV is just a small number to BA. let's not bark on the wrong tree.. if BA can produce same Q4 results (ex impairment obviously)...in Q1 surely we r at 65sen band .. ASV is just a branding purpose.

1 day ago

Felix888999

Yes in theory the contribution of ASV is small but this is the only new project that Armada is working on since the Kraken. If this one hit final acceptance issue again, the market sentiment will be impacted. Also could impact Armada`s reputation in this FPSO market.

1 day ago

rohank71

who controls ASV... not BA but their Indian partner... how to control when U own 30%... this ASV is not important to BA... even the debt is already a project debt ie no recourse to BA and not consolidated. let's hope for new projects for BA where it controls.

1 day ago

Felix888999

In term of shareholding BA is the not the controlling shareholder but BA is in charge of the technical, engineering of this project. When Final Acceptance failed, BA is the one taking the bullet. The ship herself has Armada`s name.

1 day ago

Robert Waters

This company NEVER fails to disappoint.
Sometimes I think they cannot do more of this failing as it has been already overplayed. They should have learned.
Like Kraken operational problems returning back to life after few years of operation.
Or impairments.
But here it comes, another delay with new FPSO Story.
Seems any problem I think of comes to life.
It is like a movie where the hero turn out to be a villan, causing all havoc.
Maybe Greedy Gary is that villan ... ?
And what is the new dejavu ?
My bet is legal case against a client again ...

1 day ago

vespa

Armada canโ€™t get out of its own way.

19 hours ago

nikicheong

Officially India and Shapoorji doesn't seem to acknowledge Bumi Armada as a partner and no mention of Bumi Armada's contribution to the success of the project.

10 hours ago

rohank71

#niki, with this can we confirm the "first oil offtake" from ASV done?. the risk of non delivery by ASV is over?

2 hours ago

Gabriel Khoo

Got ah. Thanks stakeholder in the previous post

1 hour ago

ITreeinvestor

Armada Sterling V achieve significant milestone of first off take on 27th feb 2024 and the offtake tanker flagged off on 2 mar 2024

12 minutes ago

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