Armanda NAPS = 1.05 RM. Doesn't that mean if we sell off all assets pay back all liabilities we will still be left with 1.05 RM? which will probably yield more if we invest in some low risk bonds.

Is there any new information in the following upstream article? Anybody has full access?

https://www.upstreamonline.com/rigs-and-vessels/payment-dispute-lingers-for-largest-fpso-operating-in-india/2-1-1660662

The core business (FPSOs / FSOs /FSRU/ FLNG) is not easy to do anymore. Primarily due to lack of financing options. In fact there is an abundance of projects but very few takers as financing sources have dried up. The mainstream banks and financing institutions are reluctant to finance long term oil & gas projects. The new initiatives are there no out of the goodness of their hearts, but in hopes of making money from that. But the current management seems clueless on how to do this.

Does anybody know what % of the DCR is the standby rate for Sterling V. How much does this translate to EPS?

"From Kenanga report: ARMADA has guided that first oil could be in 1HFY24 but the exact date was not provided"
I could be wrong, but I suspect this is coming from somebody taking the information directly from an Indian source like ONGC. In India 1HFY24 means, the first 6 months of April 2023 - March 2024.

@ Robert Waters as I understand everything on the FPSO is already complete and pre-commissioned. The article is talking about subsea scope of McDermott. Here precom typically involves just hydro tests, flange integrity tests, stroke tests of subsea valves etc.

When ONGC says within days, it probably means December 2023

https://www.offshore-energy.biz/bumi-armada-unveils-new-flng-concept-in-response-to-rising-gas-demand/

Since Armada Sterling V first Oil delay is not on account of the FPSO itself, shouldn't she be entitled to a stand by rate at least?

Actually the reasons are very clear. There is no way Bumi could deliver Cameia at their quoted price especially given the current inflated environment

It is not the cost the transformer that is high. But rather the cost of getting it offshore, lifting it, and installing it on the FPSO that will be many times over the cost of the transformer itself. But even that will be nothing compared to the loss incurred from charter hire loss for a prolonged period even in weeks.

Thanks @Robert Waters for clarifying that they are talking about the downhole pump. Just curious, do you by any chance know what type of transformer it is? Is it Oil filled or dry type? Dry types are a lot more difficult to find readily, I think

Some speculation based on what information is available so far from public sources which talked about the outage of a transformer for a hydraulic submersible pump. I am not familiar with Kraken design, but based on what I know there can be two possibilities. Hydraulic submersible pumps used for offloading is one. In this case the production can continue until tank top which will happen in a matter of a couple of weeks after the outage depending on the production rate. Another possibility is well submersible pumps which are typically electric but could be hydraulic as well, in which case the hydraulic pressurisation unit with accumulators will located on the FPSO and hydraulic lines are through an umblical to the subsea tree. If transformer for the hydraulic system is damaged then the entire production shuts down, of course we can keep the FPSO production system on a warm standby through recirculation. But if you are doing any maintenance it will be shut down for safety reasons. In any case offshore replacement of a transformer is a head ache even if you can find one on short notice. (typically these are custom made and have long lead times of a few months depending on size). So an outage of a 2 - 3 months looks possible and reasonable

Personally, I think it was not a very wise move to dispose off all the OSVs. There is a huge shortage of OSVs emerging in the the offshore wind industry. BA could have converted these vessels for offshore wind farms use.

@nikicheong
1 - is imminent any time now. 2 - is a matter of time, cannot say when and 3 - is uncertain because of client and country uncertainties

Commenting on Armada Claire termination: The termination clause in the contract was very much in favour of the client, which BA management accepted to drive growth in early years. I am hoping they won't make the same mistake again.

If valuation continues to be low, could easily become target for privatisation

No dividend this quarter?

Wouldn't high USD benefit LCtitan? Their revenues as 100% in USD while expenses are a mixture of USD and local currency

https://www.upstreamonline.com/exclusive/front-runner-emerges-to-supply-fpso-for-totalenergies-offshore-angola/2-1-1297568

BA confirmed as leading for Cameia FPSO by Upstream rumour mill

Continuing the rationale from the discussion above, during covid lockdown times toll revenue would have been lower (indeed reflected in the reported revenues). But now toll revenues are back to normal. So shouldn't dividends be higher too?

Yes. I also don't like the new layout. And I don't think they have added any new major functionalities. Just made the site more user unfriendly

full year P/E is now below 5!

With these profits, can easily afford to pay out a cent+ for dividend

P/E now below 5. The price just doesn't make sense

Delisting by next weekend

Any update on the court hearing?

A question. Will there be any charges by way of brokerage, stamp duty etc. on the final offer payment to shareholders as this is not an open market transaction. I don't want to ask this question to my remissor.

Results not announced officially yet

Results to be announced at 1120 hrs

Thanks @Pinky

@Pinky. Thanks for clarifying. I would still like to understand the accounting side of it. Does this mean that once you finish building the toll road or water treatment plant Taliworks immediately recognize the operating cashflows for XX years as profit ( a big lumped number in a year) followed by no income recognitions from the operating cashflows in the subsequent years?

What is the ex date and payment date for the latest dividend?

Ref: Mabel's observations on US elections and Trump's chances. Very good analysis and insight. I believe the key here is the voter turn out. Even in 2016, Trump managed to win based on the voter turn out, which is the main reason why opinion polls and results are quite different, not because people say something but behave differently to their expressed opinion. That is why democratic campaign this time around has been focused on getting people to vote. And also possibly the reason for Biden's candidature. If this strategy pays of Biden and Democrats can pull off a win. What is certain though is even if there is a Biden win, there will be legal challenges from the Trump camp, most likely around the postal votes. And postal votes will be critical this time around given upto 20% of total votes cast could be mail in.

Armada has around 25 Offshore vessels and a couple of pipe lay / construction vessel. The brand new cost of each OSV is around USD 15 mil. Take 100 mil for 2 construction vsls. That will make around USD 700mil of MYR 2.8 Bn as new. Armad has in the last last couple of years declared impairment in excess on MYR 2 Bn. So these assets should be sitting in their books at close to scrap or zero value. I can't see how they can have any further impairments unless some kind of accounting gimmick / fraud is at play here

Why the QR not out yet?

Any news?

Is there any chance of a dividend this year?

What is the ex. date for the proposed 4c dividend?

Husky Madura could be delayed

I agree with most of the writer's observations except for the compensation. Usually in a contract like this the termination fees are so high such that the project IRR is usually improved if the contract is terminated early rather than serving out the full term of the contract. I other words it is higher than even the figure given by Daily charter rate x number of remaining days in firm contract. Now Armada will not get paid this amount if the client has reasonable grounds for termination. From what I hear there were definitely issues on the asset but nothing that will warrant a termination. So Armada's position is quite good on this. But do expect a long drawn out court battle on this before it is finally settled.

Just a simple thought exercise. Icon has got 38 vsls (incl. 4 on order). At an average value of USD 8 mil/vsl this translates to roughly MYR 1.2 Bn. The Company has aprox. RM 700 mil debt. (from last yr financials). So net value attrib. to shareholders is approx. 500 mil. At RM 0.4/share the market value is roughly RM 470 mil. So is it currently undervalued?

I believe the the High Frequency traders are causing large up and down swings in China

http://www.fool.co.uk/investing/2015/01/29/could-premier-oil-plc-enquest-plc-collapse-like-afren-plc/