But...it is darkest before dawn!

No hope

What is wrong with oil counters on Bursa...

Guys, something might be afoot. The FPSO for ONGC 98/2 project has been named Armada Sterling V.

The FPSO under JV with Shapoorji Pallonji is named as following

Armada Sterling I in India
Armada Sterling II in India
Armada Sterling III in Indonesia
Armada Sterling V in India (under construction)

Soooo, the million dollar question is, why name it Armada Sterling V, rather than Armada Sterling IV. Did Bumi Armada and Shapoorji win a contract where the FPSO was named Armada Sterling IV but we don’t know about it? Perhaps a redeployment for Armada Claire? Hmmmm....

Wow what is happen to beloved armada

Results are out in 3 weeks time.

Important bits:

1. Idle vessel costs...can sell or redeploy? Especially Armada Claire.

2. Loan payments that are due. Can refinance?

3. What’s happening with Armada Sterling V...is it still on?

Either selling or redeploying 4 AHTS to China. Good sign?

https://forum.gcaptain.com/t/heavy-lift-transport/53214/17?utm_source=dlvr.it&utm_medium=linkedin

Armada short interest is merely 0.25%.

What waiting for...

Huat for next week!

Very bad. Looks like insider was offloading? ??

Heavy pressing.

This year end 2021 will be at RM0.65++

Key thing is refinance debt, Kraken stays issue free, sell a few more OSV and OSV utilisation increase. Ensure 98/2 no compensation.

If sell Claire lagi better.

RhB pdf report, not from thestar

Does anyone have the full RHb report?

But vwap is higher each day

4th day closing at 0.385.

No one talk fundamental? Just have a jojobaa talk about it

People, what are Fpso projects coming up that Armada could bid for?

Limbayong, Patawali, Nam Du (Vietnam), Forel (Indonesia), PY-3 (India).

Realistically, can Armada Claire get redeployment? Every year, since 2016, Bumi Armada is spending over RM50mil to maintain it. Why not just scrap? Immediately profits go up by RM50mil annually!

Tomorrow up

Jojobaa, sorry for wrong name.

FYI, Kraken is not JV. It is 100% owned vessel. JV are the Armada Sterling 1, 2 and 3 FPSOs.

Jojobee, was Kraken downtime just a week? I estimate it may have been a bit longer, like 10 days. So the loss from the Kraken shutdown would’ve been around RM20mil. Small diff, but an upside nonetheless. If the shutdown was for 2 whole weeks, then loss was RM30mkl

Poor close but what a week. Bought 350k at RM0.225 in late October 2020. Will hold till RM0.60++ levels.

Sei wor

My uncle say operator was pressing the price down. But why???

We want to hit RM0.40 by end year, then RM0.65 by early next year. Terminal TP should come to RM0.80 by end of next year.

Question is - what is catalyst?

If you look at Maybank TP of RM0.17 based on SOTP, they use net debt of RM8.3 bil as opposed to latest figure of RM7.9bil. This alone adds RM0.08/share to the value. They also knocked down Kraken NPV, while recently Bumi Armada has begun writing back Kraken's value. So the NPV there is wonky. Plus they assume ZERO extensions for all their projects. Very dumb TP by Maybank.

I think catalyst is if they announce debt restructuring by year end. Or if ONGC confirms that the 98/2 FPSO is a go. Or if they announce a significant OMS contract. Or if they sell / get a contract for Armada Claire.

All I can say is Bumi Armada is very undervalued. They are "cleaning up" (selling cold stacked OSVs slowly). Plus depreciation charges have increased this year, which means future depreciation will be lower and the Company's future profitability could be enhanced.

@GGecko, how is budget relating to Bumi Armada? >98% of their revenue is from outside Malaysia ma

The above extract is for Armada Kraken. 10% improvement YoY until YTD October.

Read Enquest update here.

Average gross production at 37,783 Bopd in the ten months to the end of October remains ahead of the top end of guidance and has increased c.10% year on year. Production efficiency year to date remains high at 86% with the floating, production, storage and offloading vessel continuing to perform well. In September, the shutdown was successfully completed, with essential maintenance undertaken as planned.

Overall subsurface and well performance remains good and production optimisation activities continue through improved injector-producer well management. Water cut rate evolution remains stable. The Group expects Kraken production to be slightly above the 30,000 Bopd to 35,000 Bopd (gross) full year guidance range.

https://www.enquest.com/media/press-releases/article/operations-update-8

Crude oil rally also Armada barely moving. I wonder what is holding it back??

Can anyone pls share the latest report from RHB and CIMB for Armada? It's not posted on this website.

What is pdts?

What is PDFs?

True, no selling pressure, so there's that. Though presumably those who bought with insider information or rumour of the results releasing (see how the price went up the past few days), may have sold at the open at 2.30pm earlier.

Is it disappointment? Or confirms that Armada's earnings capacity and debt repayment is real and in-progress?

Hmmm...market doesn't think this is good??? Haaahhhh

If we factor in the net write back on impairment loss and the unrealised loss in FX, then the core net portion will increase by RM12 mil to RM98 mil. Pretty decent.

I’m still curious why the JV is so bad. Maybe cost overruns for Kakinada project?

Also, there was a planned shutdown for Kraken in September, so revenue and profit a bit down as well due to that (easily around RM5 to 10mil profits).

Problem is there is a delay with the new Kakinada project.

Also, the results from JV for FPSO has plummeted. Any idea why folks?

Quarter on quarter, net borrowing reduces from 8.5bil to 7.9bil. Superb!

Inclusive of rm16mil impairment, meaning core net profit was above rm100 mil. Good job!

Results out. Rm85mil profit. Is good. Need to read rest of financial statememt to see if got improvement.

Lamb man today. Tomorrow up maybe?

Very lackluster. If quarter is good (core net profit > RM100mil with zero impairments), then we should see this baby hitting RM0.40 by month's end! Quarter result out on 27th Nov (noon). Pray for the best fellas!

This quarter result will out on 27 Nov 2020. Will be a gooooood quarters!!

Poor results. No new orders. Order book depleting.

Tough times ahead, but this will be a stock to watch out for once the offshore contracts returns

Seems like easy multibagger, even in a depressed oil environment

Buy 350k at 22.5

Warrants are mispriced

Also good thing for Armada is that FPSO contract awards have now been called off / delayed. Armada financials is quite bad now, lots of debt. But cash flow is good, so within next 6 to 12 months the financial footing will be stronger. By middle of next year, it will be able to bid for new FPSO contracts.

Don't forget that Armada Claire and Armada Perdana was also involved in impairment. Over USD350mil for both vessels, which comes up to around RM1.5bil.

The value of ALL their vessels (FPSO and OMS) is around RM4.8bil on the books.

Armada Claire still has receivables of USD20mil on the books, so look out for further impairment on that as well.

Maybank maintain Armada TP of rm0.15. Stupid analyst

https://t.maybank-ib.com/redir.html?q=IuvQlFiFSI94vGIw_VqeS9nf0UdtjzD8h-ZvyNPwEqA&r=https%3A%2F%2Ffactsetpdf.maybank-ke.com%2FPDF%2F191817_CN__66d9c496598c402f84edb419cd47de6b.pdf