To make the deal fair, either BAB PE goes up to 14x or MISC PE goes down to 4x.

the deal’s pricing will be crucial. MISC's valuation, trading at approximately 14x
P/E, significantly exceeds BAB's 4x, which highlights the need for careful consideration in valuing the former’s offshore assets.

We believe that BAB is worth 79 sen while BAB’s BVPS is even higher at RM1.05;

BAB’s current share price of 50 sen appears to undervalue the company.

The potential merger, if it happens, may unlock the valuation of BAB to better reflect what we believe to be its underlying fundamental valuation.

KUALA LUMPUR (Nov 15): The proposed merger between Bumi Armada Bhd (KL:ARMADA) and MISC Bhd’s (KL:MISC) offshore businesses is expected to result in MISC holding a 68% majority stake in the new entity, with a combined valuation of RM14.6 billion, according to CIMB Securities.

Armada NTA 1.05

Bumi Armada Bhd., an oil field services provider controlled by Malaysian tycoon T. Ananda Krishnan, is considering buying MISC Bhd.’s offshore energy business, according to people with knowledge of the matter.

Talks between the companies are at an advanced stage and a non-binding agreement may be signed as soon as this week, said the people, asking not to be identified because the process is private. While details such as valuation are still being discussed, a potential transaction will likely involve a share swap that will give MISC a significant minority stake in Bumi Armada, the people said.

https://www.thestar.com.my/business/business-news/2024/11/13/bumi-armada-is-said-to-weigh-buying-misc-offshore-energy-assets

Discussions surrounding Malaysian shipping giant MISC’s potential acquisition of compatriot floating production, storage and offloading (FPSO) vessel contractor Bumi Armada have resurfaced, with Upstream's sources hinting that an official announcement may be imminent, possibly within the next one to two weeks.

A potential deal would significantly bolster MISC’s position in the FPSO market, granting the company access to a larger, more diverse fleet of operational units as well as a pipeline of ongoing projects.

These negotiations first came to light in July when Malaysian media revealed that MISC, a subsidiary of national energy giant Petronas which holds the majority 51% interest, was in talks to acquire a “substantial stake” in Bumi.

MISC at the time downplayed the speculation, stating that it “actively explores investment opportunities that could add value for its shareholders" although an informed source told Upstream that these negotiations had, in fact, started early in 2024.combined entity would allow MISC to benefit from economies of scale, streamline operations and enhance its competitiveness in the global FPSO market. By pooling resources, the two companies could also improve their ability to secure long-term contracts with oil and gas operators and expand their portfolio, increasing their chances of winning future tenders.

“There will be significant synergies in operations, maintenance and project execution,” said one FPSO industry expert based in Singapore.

“By combining assets, the companies could reduce costs, optimise asset utilisation and boost project delivery efficiency.”

The merger would also offer strategic access to key offshore regions. Bumi Armada has a strong presence in regions including Southeast Asia, India and West Africa — markets where FPSO operations are critical to offshore oil and gas production. The tie-up would enable MISC to strengthen its footprint in these high-demand areas.

Beyond operational synergies, the deal could diversify MISC’s revenue streams. While the shipping behemoth is primarily known for its liquefied natural gas carrier and tanker businesses, an expanded FPSO portfolio could provide stable cash flows from long-term lease arrangements, serving as a hedge against volatility in other sectors of the energy market.

In response to Upstream's query on the matter, MISC said: "We do not respond to speculation.

"Rest assured, we will communicate with relevant stakeholders if and when there is material development in any of the various opportunities we explore as part of our ordinary course of business."

At the time of publication, Bumi Armada had not responded to Upstream's request for formal comment.

Niki, Can share full article ?

Take a look at the pledged account for the Managing Director. A similar situation to CEB might unfold. The owner has a large margin and has been selling their own shares recently, with high receivables on the books.

Be cautious, as the share price could collapse at any moment.

Y24 Earning RM52,969,000

Receivable RM127,590,125
Other Receivable - Advanced to Supplier RM59,796,459

What a generous Company, customers buy seafood from them no need to pay cash at the same time the company advanced payment to supplier for seafood purchase in future.

In this quarter, core profit still 1.4 millions after exclude one off.

Fair value changes in short term investments 13,261

Impairment Lost -13,912

The Group’s utilisation is expected to be lower in 2H 2024, due to three of our rigs, namely NAGA 2, NAGA 5 and NAGA 6,
which will be conducting their Special Periodical Survey and 5-yearly maintenance in the second half of the year.

Malaysia’s Bumi Armada has started the tender process for a marine 3D seismic survey on its Akia working area offshore North Kalimantan, Indonesia, where it has hopes for a fast-track development.

https://www.upstreamonline.com/exploration/indonesia-newcomer-launches-seismic-tender/2-1-1685442

https://www.blackridgeresearch.com/blog/fsru-meaning-definition-guide-floating-storage-regasification-units

Here are some of the global top FSRU companies :

HÖEGH LNG AS (Norway)
Excelerate Energy, Inc. (United States)
New Fortress Energy Inc. (United States)
BW LNG (Singapore)
Mitsui O.S.K. Lines, Ltd. (MOL) (Japan)
Bumi Armada Berhad (Malaysia)
Flex LNG (Greece)
Gazprom (Russia)
Eagle LNG (Netherlands)
Dynagas LTD (Greece)
Exmar NV (Belgium)

Carbon shipping fleet plotted for project to clean up power plant emissions

https://www.upstreamonline.com/carbon-capture/carbon-shipping-fleet-plotted-for-project-to-clean-up-power-plant-emissions/2-1-1682485

looking forward official orderbook award by end of the fourth quarter of 2024

MISC acquire BAB is in the progress, just wait patiently and they will make announcement accordingly.

CNV RFDP agreed by all Partners and awaiting formal approval

Positive progress towards obtaining TGT and CNV licence extensions

Discussions continue with several interested parties in preparation for the drilling programme on Block 125

Pharos Operation Update:

TGT Revised Field Development Plan (RFDP) was approved by the Ministry of Industry and Trade (MOIT) on 9 January, enabling the two-well drilling programme to commence in 3Q

Anyone with full article?

FPSO accepted at last... six months after producing first oil in India
https://www.upstreamonline.com/rigs-and-vessels/fpso-accepted-at-last-six-months-after-producing-first-oil-in-india/2-1-1677622

its 4 rigs. and yes, it will not going to shutdown all at once hence this will drag down earning for continuosly 3 quarters.

while during that shutdown mess, naga 3 & 5 will be out of contract.

"" please refer to Kenanga Report in May24 ""
However, in 2HFY24, Naga 2, Naga 5, and Naga 6 are scheduled for special periodical surveys (SPS).

Except for Naga 3 which is set for SPS in 1QFY25

Price will be slowly downtrend in coming 6 to 9 months to reflect the events above.

upcoming quarters will be badly hit by 4 rigs Planned shutdown in Y24Q3-Y25Q1
Contract end for Naga 3 & 5 soon.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3463477

Finally, final acceptance and new earning will kick in from Y24Q3 onwards

https://www.upstreamonline.com/finance/acquisition-talks-reported-between-malaysian-fpso-players-but-no-material-development/2-1-1675120

Potential to create a mega FPSO player equal to Modec’s fleet size, with complementary areas in geographical reach.

Theoretically, combining the 13/8 offshore assets of MISC/BAB can create an FPSO behemoth with a fleet size equivalent to Modec, the largest FPSO player globally

Dyson to axe 1,000 jobs in UK, FT reports

https://www.klsescreener.com/v2/news/view/1355365/dyson-to-axe-1-000-jobs-in-uk-ft-reports

MISC didn't deny the transaction, instead it mean that if any progress big enough to disclose, they will make announcement in bursa.

In reference to the article in The Edge Malaysia dated 8 July 2024 which speculates on the possibility of MISC undertaking a corporate transaction involving Bumi Armada Berhad, the Company wishes to clarify that whilst MISC continues to explore growth opportunities, in its ordinary course of business, there is currently no development within any opportunity that would necessitate disclosure as per the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.

From theEdge Weekly

https://klse1.i3investor.com/blogs/news6720241/2024-07-09-story-h-157769037-MISC_could_take_a_substantial_stake_in_Bumi_Armada.jsp

in your dream

nemesis Quarterly Fin Results is releasing soon which is expected to propel its EPS to new high...Buy
23/05/2024 9:44 AM

Y24Q1 PAT 21,173
Y23Q4 PAT 37,522
Y23Q3 PAT 17,230
Y23Q2 PAT 11,116
Y23Q1 PAT 136

Niki, Other than the Non-Informative Annual Report, is there anything else we should anticipate this week?

Is there any news regarding the final acceptance of Sterling V? It is expected to be completed this month.

https://www.moneycontrol.com/news/business/ongc-to-invest-4-5-billion-in-2-3-years-to-boost-output-from-mature-fields-12559841.html

looking forward Armada Sterling V to final acceptance by May 2024

ONGC is optimistic about improving output in FY25 with production set to start at its deepwater block in the Krishna Godavari basin. Kumar said installation activities would be completed by early May and peak production from the block would be reached by the end of 2024.

MISC BERHAD ("MISC" or "the Company")
- Award of Contract: Three (3) Liquefied Natural Gas ("LNG") Carriers on Long Term Contract with QatarEnergy

Examine the expanding receivables and negative cash flow. They remind me of the Serbak Dynamic.

tidak termasuk keuntungan forex 12.7 juta pendapatan teras meninggalkan 3 juta

排除外汇收益 1270 万 核心收入剩下 300 万

exclude forex gain 12.7 millions core earning left 3 millions

without forex gain, earning left 3 million

VS latest earning drop 67%.

PT RKA was officially served with the decision of the Supreme Court that the Court rejected the appeal and upheld the decision of Pengadilan Tinggi Pontianak as follows:

i) PT RKA is to pay a compensation of IDR188,977,440,000 (approximately RM56,677,646) for the environmental loss to the National Account of Indonesia as per the claim by the Respondent; and

ii) PT RKA is to rehabilitate the environment on the affected area due to the fire incident of 2,560 ha and to reactivate the affected ecology system with the cost of IDR731,036,640,000 (approximately RM219,250,698).

Assuming BAB trade at a similar PE to Yinson, our implied target price would be RM1.13