BUMI ARMADA BERHAD
KLSE (MYR): ARMADA (5210)
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Last Price
0.675
Today's Change
+0.015 (2.27%)
Day's Change
0.635 - 0.675
Trading Volume
19,742,200
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45 people like this. Showing 50 of 72,584 comments
That I agree. Many times too many I sold counters that were going up senselessly and against all logic. Soon after, there was an anouncement. New contract, winning law suit or similar. In Armada case most likely positive is that the statue of limitation has run out. Or judge decided that they will not be tried as an adult and go to minor court. Or their officer in Malaysia Anti Corruption Committee resigned.
:-)
1 month ago
This is about a month old and am not sure if posted earlier by others but here goes.
Gain For MISC With Bumi Armada Synergy
By Editor -November 16, 2024
News broke in Jul 2024 that MISC may take a substantial stake in Bumi Armada Berhad, obliquely implying that Objektif Bersatu Sdn Bhd (OBSB, ultimately owned by tycoon Ananda Krishan) that holds a 34.6% stake in BAB could be looking to exit the company.
MISC’s share price subsequently corrected 16% from RM8.90 on 3 Jul 2024 to a recent low of RM7.46 on 25 Oct 2024, as shareholders feared the implications of MISC possibly having to expend a lot of its cash on a mandatory general offer (MGO). We think that this worst-case scenario is now unlikely to be true, as MISC and BAB announced to Bursa on 14 Nov 2024 that both parties have signed an MOU and will over the next nine months explore a merger of MISC’s Offshore Business Unit (OBU) with BAB in an all-share transaction. CGS Investment Bank theorises that MISC may inject its OBU into BAB in exchange for new BAB shares. The house’s target price for BAB implies a RM4.7bn valuation (in contrast to its market cap of RM3bn), while it also values MISC’s offshore business at RM15bn.
Combining the two entities at these valuations, MISC will end up with a 76% stake in the merged entity (‘ME’), while OBSB’s stake in ME may be diluted to 8.3%. MISC may be obliged to execute an MGO for BAB, according to the Malaysian Code on Take-Overs and Mergers 2016, but if OBSB publicly announces that it does not intend to accept the MGO, there is a chance that MISC may not cross the compulsory acquisition threshold of 90%, which fits in well with the stated intention of both MISC and BAB to keep ME listed.
As such, assuming the merger is completed, CGS expects MISC to place out shares in ME to ensure adequate free float. A 10% placement by MISC may raise RM1.97bn for MISC (assuming a valuation of RM19.7bn for ME), equivalent to 22% of the RM9.1bn that MISC had spent on building the FPSO Mero-3. In this way, CGS believes that MISC can indirectly achieve its goal of paring down its stake in Mero-3, since its efforts to find trade buyers for the Mero-3 have so far not been successful, according to the company.
Operating synergies and prospects for MISC’s growth
MISC may experience a relief rally, since an all-shares transaction will help preserve MISC’s cash balances. The house thinks that a merger of two mid-sized FPSO companies can also help pool engineering resources, with cost synergies, while MISC can gain exposure to BAB’s growth initiatives, including the Bluestreak carbon capture and storage (CCS) project in the UK, and the potential to monetise gas via a floating liquefied natural gas (FLNG) solution in Indonesia. The house reiterates Add on these potential rerating catalysts.
EGMs will need to be convened at both companies, giving minority shareholders a chance to analyse closely and vote accordingly. The key downside risks are if the valuation for MISC’s OBU is lower than expected, or if BAB’s valuation is higher than expected.
4 weeks ago
https://www.pharos.energy/investors/press-releases/vietnam-production-licence-extensions-granted/
The TGT block has been granted a 5-year license extension to 2031! This is good news, as the Armada TGT FPSO's lease was recently extended to 2026. There is a potential 5 additional years of extension to come in the future.
3 weeks ago
About a month ago, CEO of Sapura Energy resigned. Stock went up 50%. From 3 to 4.5 sen. (back to usual now). Imagine the reward for shareholders if Greedy Gary resign. One can only dream.
3 weeks ago
@ Robery Waters
Has Gary done a good job as CEO?
I guess so as he has brought the company from the red into the black
And from billions of debt to what it is today
Can he do any better by getting new and additional contracts?
Yes
But are we sure a new CEO can do any better.
Sometimes it is better to deal with the devil we know than the angel we do not.
Anyways, just my 2 sen worth of opinion as i am not as knowlegable as you and NikiCheong
3 weeks ago
Armada’s future would lift off with Petronas being the benefactor.. Hopefully the merger takes place with MISC’s outfit.
3 weeks ago
Just88 no estimate. It’s a management overlay, they can pluck any figure. If I had to guess, something in the region of rm200mil.
2 weeks ago
Nikicheong, thank you for your opinion. Any idea what is the current book value of karken ?
2 weeks ago
Blessed new year to everyone! May the new year beckon positive developments at Bumi Armada.
2 weeks ago
That was one BIG Dump. I was just selling some at 0.67 looking at transactions when I saw dozens of selling notifications bring it down to 0.655 with see of red flowing in. Somebody crystallized his profit.
2 weeks ago
l have been selling over past few days. There is still possibility of this company shares to go up. But I had it for too long. Greedy Gary, green initiatives that never materialize, impairments every few years ... all of that wears me out.
2 weeks ago
Wait for the merger with MISC. It is a shame after holding for so long and left just before the dawn of a new beginning.
1 week ago
The price has already appreciated ... my order to sell at 0.68 awaits. But a lot more to sell at even higher price. Seems there is some development that insiders know, but we have no idea of.
Good action today.
1 week ago
2. Golden Age of the FPSO cycle
2.1 Strong global FPSO outlook
Rystad Energy estimates that total offshore upstream Oil & Gas and CCS
investments to grow at a 5% CAGR from 2023 to 2027E, where the bulk of
the growth would come from greenfield and brownfield capex – see Figure
4. In 2024-2030E, deepwater (125-1,500m) and ultra-deepwater (>1,500m)
will spearhead offshore liquids production growth at an estimated CAGR of
2.2% and 8.0% each
FPSOs are often the most popular/feasible option for developing oil & gas
fields in such depths as pipeline installation/construction can be extremely
expensive and technically challenging. While FPSOs are not exclusively used
in deepwater and ultra-deepwater, they are particularly well-suited for
these environments due to their ability to handle their unique challenges
and complexities.
We think the FPSO market is currently in the “Golden Age” due to a robust
global tender pipeline – with an expected 60 awards from 2024-2028E
(source: Energy Maritime Associates).
1 week ago
Ah, on a day like today we would have a few dozen messages during the trading about the action a couple of years ago. And of course more comments in the evening. How things changed. But maybe it is the normal run of things that only the very patient stay long enough to be rewarded.
1 week ago
Quite right Sovereign, but with a qualifier; with good governance and transparent management.
1 week ago
nvm, I sold all already, too tired to hold anymore at least earn some angpau money.
3 days ago
I also sold some, but majority of stake I am still holding. Looking for new bargains. This does NOT look like a bargain any more. Rather a peaking stock that may still have a bit of upward move to go. Cheers.
3 days ago
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4.9 / 5.0
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....
abcb
Try to challenge 0.70 to 0.80 within a few days
1 month ago