Bumi Armada

[winston]

not vested

Analysts downgrade Bumi Armada after Kraken FPSO shutdown

By Isabelle Francis

Hong Leong Investment Bank (HLIB) Research estimates that the Kraken FPSO has a daily charter rate of approximately USD480k/day (or USD175m/year), which accounts for some 35% of the group’s revenue contribution in FY2022.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/669941

[winston]

not vested

Bumi Armada share price down to 48.5 sen on likely revenue hit

RHB Research said it did not expect “expect a lumpy vessel impairment” as it is still on the assumption that the issue will be resolved in the short term.

Bumi Armada had provided RM1.6bil impairment charge on Armada Kraken in 2018, when the vessel had a technical failure which affected its uptime availability.

The research house estimated that Armada Kraken would contribute 30% to 35% of FY23 earnings.

Source: The Star

https://www.thestar.com.my/business/bus ... evenue-hit

[winston]

not vested

Bumi Armada (BUY/ TP: RM0.80)

Two announcements were made today - both positive! One of them relates to FPSO Kraken restart

https://www.klsescreener.com/v2/announc ... ew/5198379

FPSO Kraken is back online. Production is currently around 60% of pre shutdown levels. Further work, testing and investigations ongoing to stabilise and bring the vessel operational performance back to pre shutdown level

As we had highlighted early June, transformer failure downtime for global FPSOs in the past tend to range between 30-60 days before production resume. Hence, the 1 month downtime faced by FPSO Kraken did indeed fall within that range.

We earlier factored in full 3 months downtime (cut earnings by 8-9%), while actual restart was done in c.1 month. Looking at the current development, nett earnings impact to BAB is looking more like 4-5%.

Overall, very good news. We expect this announcement to rerate share price partly removing the Kraken overhang

https://www.klsescreener.com/v2/announc ... ew/5196567

Entered into a MOU with Navigator Gas (NG): 50:50 JV to provide CO2 shipping and injection solutions in UK using shutter tankers. NG is the owner and operator of the world’s largest fleet of handysize liquefied gas carriers (like MISC…)

This is one of its ESG initiative, which we view positively. But there will not be any earnings impact at this juncture.

Source: HLIB

[winston]

not vested

HLIB Research upgrades Bumi Armada to 'buy', target price 54 sen

By Surin Murugiah

Signed a non-binding memorandum of understanding (MOU) with Navigator Holdings Ltd to establish a 50:50 JV to venture into carbon capture initiatives.

If successful, the first shipment of CO2 is anticipated by the parties to take place three years after taking the FID — which also means that there will be no near-term earnings impact from this development.

The group announced that its Armada Kraken FPSO has recently start-up and is currently at 60% of pre-shutdown production levels.

We upgrade BAB to 'Buy' — with an unchanged TP of 54 sen — pegged to a P/E multiple of 6x on FY23f earnings, which is at a 40% discount to its peer Yinson Holdings Bhd’s one-year forward multiple of 9.5x,

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/672127

[winston]

not vested

Bumi Armada grossly oversold, says HLIB Research

By Surin Murugiah

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/672662

[winston]

not vested

HLIB selected Bumi Armada Bhd as its top pick

Assigning a "buy" call and target price (TP) of 71 sen — due to the group’s favourable outlook for floating production storage and offloading players.

Additionally, Bumi Armada has an undemanding valuation — forward price-earnings (PE) of five times based on the forecasted earnings for the financial year ending Dec 31, 2024 (FY2024) — in anticipation of bumper earnings in FY2024 as contribution from Armada Sterling V sets in.

Source: The Edge