(Jan 3): Bumi Armada Bhd is poised for sequential earnings growth in the coming quarters, amid better quarter-on-quarter contributions from the Armada Kraken floating production storage and offloading (FPSO) unit, and first oil being achieved in Oil and Natural Gas Corporation Ltd's KG-DWN-98/2 in the coming weeks.

Fresh FPSO front-runner emerges for challenging TotalEnergies Angola project

https://www.upstreamonline.com/exclusive/fresh-fpso-front-runner-emerges-for-challenging-totalenergies-angola-project/2-1-1566991

Latest update from ONGC, oil production will be commence in Dec 2023.

#ONGC is eyeing commencement of #Oil production from its flagship deepwater project KG-98/2 Development Project in December 2023.

Gas production from Project has already commenced in March 2020 with plan of further ramping up by May 2024.

https://www.linkedin.com/posts/oilandnaturalgascorporation_ongc-oil-ongcjeetegatohjeetegaindia-activity-7137463703498596352-aHSb

Bollywood dance again

Due to the vessel’s idle status,
management notes that it has been receiving standby payments since March 2023

From Aminvest report : The group’s 30%-owned FPSO Armada Sterling V is expected to see first oil by 21st November, which will be followed
by the vessel acceptance test which may take up to 3 days.

Highlight from Maybank: we are forecasting a record-high core net profit of MYR853m in FY24E

Armada will turn into netcash company after 5-7 quarters.

• Net gearing at 0.72x is the lowest since Q2 2015.

McDermott has been awarded a transportation and installation contract by the Oil and Natural Gas Corporation (ONGC) for the KG-DWN-98/2 development project, located off the east coast of India.

Under the scope of the contract, McDermott will perform the transportation and installation of a central processing platform (CPP) and living quarters. Once installed, the CPP will be used to process wet gas which will then be transferred from the platform to an onshore terminal.

The current operated assets as follow:

3 wholly owned FPSOs
Armada TGT1
Armada Kraken
Armada Olombendo

5 jointly owned FPSOs
Armada Sterling I
Armada Sterling II
Karapan Armada Sterling III
Armada Sterling V
Armada LNG Mediterrana

2 construction vessels
Armada Installer
Armada Constructor

to account for the decline in household spending. Our TP is reduced to RM1.16 after rolling over our valuation base year to 7x

Kenanga Report
KUALA LUMPUR: The ongoing restoration of Bumi Armada Bhd's Armada Kraken floating production storage and offloading (FPSO) vessel could put the facility's operations back on track within the next one or two months, says Kenanga Research.

In a note, the research firm said it is positive over the progressive restoration of the Kraken FPSO's production, which cushions concerns of a major financial impact to Bumi Armada.

This comes following the offshore service provider's announcement yesterday that it had reconditioned and reinstalled a hydraulic submersible pump (HSP) transformer on the vessel, which brought its operating level back to 90% of pre-shutdown levels.

"We applaud Bumi Armada for reinstating operations close to full capacity in less than two months since the first shut-in announcement," said Kenanga in its company update.

On June 2, 2023, Bumi Armada announced that the Kraken FPSO had experienced a production shut-in following the failure of its HSP transformer unit, guiding that that there would be material impact resulting from the Kraken's shut-in.

By June 21, the Kraken achieved start-up and was able to operate at about 60% of its pre-shutdown levels.

Kenanga said it factored in a partial loss of bareboat charter income from the Kraken for June to August 2023, which is reflected by a "benign" 9% impact in its current forecasts


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Following the latest update, Kenanga said it maintained its "outperform" recommendation and sum-of-parts target price of 62 sen a share.

"We like Armada for sustained traction in its efforts to deleverage its balance sheet (current net gearing: 0.8x), long-term earnings visibility from substantial orderbook in excess of RM20bil (including extension options), and it being the leading contender for a US$1bil EPCC contract for FPSO Cameia," it said.

However, it cautioned that investor sentiment may still be dragged lower by the possibility that the financial impact of the Kraken shut-in may be larger than expected.

It said there could also be substantial vessel repair and maintenance costs that are not fully covered by insurance, while client Enquest may request for reimbursement or impose penalties on Bumi Armada.

remember buy the rumor and sell the news.

Trade receivable almost as large as 1 quarter of revenue. Logic?
Especially the receivable is from China.

We slash our earnings forecast for FY23F-25F by 23-42%, to account for the decline in household spending. Our TP is reduced to RM1.16

Niki, where you get the update? Enquest IR or the xxx at Enquest, who operate the Kraken field
------------------------------------------------------------------
nikicheong A positive update, the Armada Kraken FPSO is targeted to return to full production in the matter of weeks, not months. We're looking at between the next 2 to 4 weeks.

Trust your own research and the rest to do is wait patiently

niki, no need wait for any research report. We all know well where armada can reach =)

announcement later , tommorow open 0.60

niki, please note that there are plan to restart this week. This doesn't mean 100% work as they did try restart before this but fail

Do not forget EnQuest chat actually is just another public forum like i3investor.

https://klse1.i3investor.com/blogs/2019/2022-11-30-story-h-304697073-Redtone_Cheapest_5G_related_Counter.jsp

The fact is CPO price hardly go up further.
At the same time cost of production is surging due to
1) high fernitiser price
2) min. wages raise from RM1,200 to Rm1,500

Y23Q1 another additional profit coming in.

30%-owned Armada Sterling V (the remaining 70% owned by Oil and Natural Gas Corporation) has sailed away in early November this year and is expected to arrive in the east coast of Kakinada, offshore India by the end of 2022. This paves the path for maiden earnings contributions from the vessel from 1QFY23 onwards.

Dun forget that no more Kraken & TGT shutdown for maintenance in next quarters.

Adjustments:
Net allowance for impairment: +RM4.5m
Reduction in residual vessels (fully owned): +RM25.9m
Reduction in residual vessels (JV and associates): +RM45.1m
Unrealised FX Gain: -RM8.2m

Adjusted Core Net Profit: RM217.0m

AGM22 : Serving Shopee staffs reduce 40% from 1500 to 900.

Impact will been reflect in coming quarters.

expected higher profit in coming quaters.............

Mr Targett responded to further queries from the shareholders as follows:-
(a) Foreign currency effect on the Company’s business - 85% of the Company’s revenue was denominated in USD. Generally, if the USD strengthens, BAB net profit would strengthen.

ARMADA ｜ 长期被低估的股票？解决这三个问题市值绝对会爆炸！
https://www.youtube.com/watch?v=5JxPqhP9Pe4

US stocks end sharply lower as Fed hints at more rate hikes

（吉隆坡2日讯）立通国际（REDTONE，0032，创业板）建议从创业板转往主板上市，预计明年首季完成。

董事局相信，转主板上市将提升公司的声望、信誉及声誉，并获得客户、供应商、业务伙伴、金融机构及投资者等更大认可。

will not official due to NDA signed, Management will not divulge such sensitive information

shopee is one of major customer for scicom. it will be huge impact to revenue.

Major customers
Four individual customers representing 7%of total customers contributed 72% of the Group’s revenue.

Start from Apr2022 Suria earning will reduce due to 3.4 million tax penalty !!!

It was further resolved that the LHDNM be and is hereby authorised to utilise the RPGT of RM25,838,520.65 which the Company had paid to the LHDNM in 2015 for year assessment 2013 in respect of the First Transaction, to be discharged by LHDNM and to be set-off against the Initial Payment of RM18,638,520.65 on or before 31 March 2021 as well as the twelve (12) instalments of RM600,000.00 each month for the months of April 2021 to March 2022.

The Company will only commence the monthly cash instalment of RM1,162,000.00 from April 2022 until February 2024 with final cash instalment of RM1,163,077.10 in March 2024.

Y22 Mahsing earning will be drag down by their glove segment.

Even palm oil at RM3000 is more than enough for plantation company to make handsome profit.
Same goes to oil & gas company with oil price at USD 65.

BNM okays start of talks in MBSB's planned MIDF buy from PNB

国行准马建屋洽购MIDF

@Tan KW Thank you for the feedback , the link did bring us back to legacy site main page, but once we click on other things like "Price Target" it still bring us back to new interface.

9 months no new contract award, last contract get is June-21.
we can foresee huge drop in revenue and profit in coming quarters.

Also do not forget TSH and INNO with dividend yield 12% & fully matured tree profile

Serbadk 2.0 in the making ............ check the receivables & contract assets and balloning debts.

11% dividend , highest among plantation sector.

armada much better with pe5 only

The four subsidiaries recorded a combined loss after taxation of RM56.6 million for the nine months ended Sept 30, 2021,

Meaning each quarter PAT will be increase around (56.6m/3quarters)=18.8m in Y2022

why not just direct buy oil stock like armada?

palm oil RM5000 , shares price stuck ; when palm oil drop to Rm3000-RM4000, expected panic sell down.
No point to hold palm oil stocks at this moment

why no INNO in Top Picks

private placement like muhibah is coming in near term