Hi everyone, please share research reports as you get them. Particularly interested in CIMB and UOB.

Maybank: https://mkefactsettd.maybank-ke.com/PDFS/350951.pdf

A rather "boring" update. There are around RM30mil - RM40mil hidden losses from Armada Kraken in the quarter as the FPSO only returned to full operations on 9 August 2023. So the revenue deficit in the first 40 days of the quarter would've directly hit the bottomline. Expect a far stronger Q4 2023, especially with some contribution from Armada Sterling V as well. Assuming no issues, next quarter we shall see core net profit in excess of RM200mil.

Reported net profit to SH: RM177.8mil

Adjustments:
Unrealized FX Loss: +RM15.4mil
Gain on Disposal: -RM18.1mil
Reversal of Impairment: -RM0.5mil

Net adjustment: -RM3.2mil

Adjusted core net profit to SH: RM174.6mil

No shit, Sherlock

Yes according to my source, staff abroad the FPSO received an official email notification today that first oil is due to be provided on or by 19th November 2023.

So fingers crossed this time next week we get an official announcement from Bumi Armada on the first oil from Armada Sterling V, and consequently the commencement of the charter period!

Based on Bumi Armada's website, the ARMADA LNG Mediterrana is now a jointly-owned vessel. Hmmmm???

Possibly insiders know of another delay to Armada Sterling V ffs!!!

It's coming soon for sure, as late as mid December 2023, but it should be here by the end of the year. Fingers crossed no more hiccups.

Full article:

India’s state-controlled Oil & Natural Gas Corporation (ONGC) is poised to kick off oil production within days from its much-delayed flagship deep-water project in the Krishna Godavari basin offshore the nation’s eastern coast.

The $5 billion Cluster-2 project in the KG-DWN-98/2 block is being developed by 26 subsea wells feeding up to 60,000 barrels per day to a floating production, storage and offloading vessel.

ONGC is just days away from firing up production, after more than two years of delays due to the coronavirus pandemic and other key execution issues, two people with direct knowledge of the development told Upstream.

“McDermott International [the key installation contractor] is carrying out pre-commissioning activities and ONGC is likely to start production as early as 20 November,” one person noted.

Oil will be produced by the Armada Sterling V FPSO, which is ready to get to work, according to one source.

“Initially up to 10,000 barrels per day of oil is likely to be produced from the [development’s] M field,” the source said.

The floater is owned by India’s Shapoorji Pallonji Energy and Malaysia’s Bumi Armada in a 70:30 joint venture and completed installation of a seawater lift riser on 20 January. It sailed away from a yard in Singapore on 21 November last year.

At a later stage, Cluster-2’s A & P fields are also likely to be brought online, with the FPSO set to produce 60,000 bpd of oil at its peak, sources noted.

Oil production from Cluster-2 was set to begin in the first quarter of this year. However, the delays continued after the field’s critical subsea infrastructure suffered damage.

Upstream understands that the damage has been fixed.

It's a weird article that says production will begin "within days", while my sources are instead telling me there is another delay, from the November 2023 start-date to December 2023 start-date. Time will tell.

https://www.upstreamonline.com/exclusive/indian-giant-poised-to-start-oil-production-from-5-billion-deep-water-project/2-1-1546779

India's state-controlled Oil & Natural Gas Corporation (ONGC) is poised to kick off oil production within days from its much-delayed flagship deep-water project in the Krishna Godavari basin offshore the nation's eastern coast.

FYI W Hotel is being sold, 2% deposit has been collected.

Bumi Armada is working on the pre-FEED for building an onshore gas plant at the Budi gas field in Indonesia.

3. Subsea Construction

Subsea Construction specialises in EPCI and T&I subsea projects, with in-house construction vessels, assets, and facilities located in Caspian Sea, capable of undertaking offshore construction at various water depths:

a. Armada Installer
Derrick Pipe-Lay Barge with traditional S-Lay and J-Lay laying capabilities and heavy-lift capabilities

b. Armada Constructor
Multipurpose Shallow Water Barge with very-shallow water pipelaying and dredging capabilities

c. Post-Trenching / Deburial Systems
Cutting machine and jetting machine

2. Gas Infrastructure

In line with the company’s sustainability strategy, gas infrastructure will drive future growth. The business focus is in developing the network of facilities and systems used for the extraction and distribution of natural gas. This is essential for ensuring a reliable and efficient supply of cleaner burning fossil fuels to meet the growing demand for cleaner energy.

To support our clients to achieve 2050 Net Zero within the timeframe required, Bumi Armada has developed several innovative solutions offering the opportunity to reduce the amount of greenhouse gases released into the atmosphere.

- Floating LNG Unit for early monetization of stranded gas;
- Floating Storage Regasifcation Unit to meet early demand for natural gas;
- Carbon Capture to reduce the amount of greenhouse gases released into the atmosphere;
- Floating CO2 Storage Injection Unit to create negative emissions.

1. Operations

The Operations business unit specialises in engineering, procurement, construction, commissioning, and the operations of floating oil and gas facilities as per the specific requirements of clients.

3 wholly owned FPSOs
3 jointly owned FPSOs
1 Liquefied Natural Gas ("LNG") floating storage unit ("FSU")
1 partially owned FPSO under construction

The "Our Services" page has been fully updated: http://www.bumiarmada.com/our-services/

Bumi Armada Berhad provides services throughout the oil and gas value chain – from exploration through to field development construction, production and operations – via three central business units.

Business Units:

1. Operations
2. Gas Infrastructure
3. Subsea Construction

Having simultaneously managed and delivered several large projects safely, the company has developed a reputation for its project management capabilities. We deliver innovative solutions and quality facilities that incorporate leading technologies to cater to your needs in field development, production and storage.

As an integrated oilfield services provider wherever your company is, in terms of field development and production, Bumi Armada offers a range of capabilities from life of field surveys, production facilities, installation and operations. Drawing on our decades of experience we will bring innovative solutions to bear, provide quality facilities safely and services as well as incorporate leading technologies where appropriate.

@Robert, ABS also approved their FLNG concept. Bumi Armada made a Bursa Malaysia announcement on this a couple of days ago.

Hari hari announcement tapi takdak anything concrete. Bila hujan, ia akan mencurah-curah!

BlueStreak CO2 has a logo: https://oeukdecarbonisationconference.co.uk/wp-content/uploads/2023/09/Bluestreak-CO2-1.jpg

Bumi Armada is also doing pre-FEED for an Onshore Gas Plant facility. We might get an announcement in the next few months on this if it materialises.

Bumi Armada Berhad ("BAB") refers to its announcement on 24 April 2019 and 23 February 2021 with respect to its existing USD660 million term loan facility ("Existing Facility"), and wishes to announce that Bumi Armada Holdings Labuan Limited ("BAHLL"), its wholly-owned subsidiary, has successfully secured a Syndicated Term Loan Facility (“Term Loan Facility”) for an aggregate principal amount of USD105.5 million with a final maturity of 25 September 2028, to refinance the remaining balance of the Existing Facility maturing in May 2024.

BAB’S Chief Executive Officer, Gary Christenson said:

“We are pleased that we repaid a significant amount of the Existing Facility over recent years. We are equally delighted to have secured the new Term Loan Facility which demonstrates continuing strong support from our financiers.”

The announcement is dated 11 October 2023.

RayLee the first oil date for Armada Sterling V has no relationship with the Q3 results for Bumi Armada. Two different things.

Let's wait and see if there's any truth to it. I'm skeptical but you never know.

Currently TGT FPSO is on planned shutdown maintenance, we might see slightly lower revenue / profits in Q4 2023.

It's sad, but thankfully Bumi Armada is one of those stocks with ample margin of safety. The downside at these levels are capped, while the potential upside is high. However, the upside might still take years to materialise, and maybe even, never.

Lets see how things go though. Hopeful we get an announcement of TGT extension sometime next week.

Checked with someone from ONGC, internal target deadline pushed back to Dec 2023. Quite a shit show I must say. Indian nationals are the masters of overpromising and undderdelivering. If you've worked with them, you'll know.

Unlikely for the BBC to be higher, in fact there's even a small chance of being lower.

The O&M part might be higher, but only to offset inflationary pressures.

Felix I have flagged the TGT extension long ago and shared information from the Pharos Energy investor meets.

The latest information I can share is that they're meeting Bumi Armada in KL next week for contract extension discussion and finalization. No idea if the contract will actually be signed then, or later on. I gather that it will be on a 2y firm + 5y optional basis.

Pharos Energy is coming to KL next week, to discuss and maybe even sign the contract extension for the TGT FPSO charter hire.

From what I gather, they will sign a 2 year firm extension to Dec 2026 first, with a 5 year optional extension to Dec 2031.

Take note that the TGT field license extension was approved to Dec 2026, and the field operators are currently applying for the TGT field license to be extended to Dec 2031. The final decision will be known by Q1 2024.

Why would KLK have enough considered this deal? It was a stinker, a private bailout. Now the govt will do the bailout instead due to racial sentiments.

Anybody have the latest CIMB research report on Bumi Armada? Please share. Much appreciated!

Heavy selling on 24th May, dropped from 67 sen to 63.5 sen. Insiders knew of this issue on the 23rd of May. Stock was in downtrend until it gapped down on official announcement.

Of course I hope nothing of the sort has occurred here, but it is one possibility

Risk888 what nonsense Kraken was falling in the days before the official announcement (but after the shutdown occured).

Maybe one of the ships have blown up or something and heavy selling by insiders.

Otherwise this drop seems odd I must say.

Hmmm

The current low PE ratio is misleading, because stock prices are inherently forward looking. The earnings are expected to fall off a cliff in FY2025 / FY2026 due to the end of the TGT option charter period in Vietnam and the Kraken firm charter period in the UK. Add to that the Sterling II firm charter period ending in 2024 and only a 1 year option period to 2025 being agreed to for now.

Guys, Yinson is valued higher simply because they have far more lucrative, high quality, long term contracts compared to Bumi Armada. Bumi Armada's only significant contract is Armada Olombendo, even Armada Kraken is no longer significant as the firm charter ends within 2 years time. We simply need to replenish the orderbook to see any kind of significant re-rating.

Here's to a brighter October folks. A few interesting developments that should be positive for the prospects of the company, not the least first oil for Armada Sterling V!

Why listen to people, do you own research!!

Heads up guys, the official award for CCS project in Indonesia is coming soon.

The calm before the storm...

https://www.upstreamonline.com/field-development/fpso-contractor-confirms-upstream-oil-and-gas-debut/2-1-1524271

Interesting tidbit: Market sources informed that Bumi is also finalising a second upstream permit in Indonesia.

Previously, there were only two business units. "Operations" and "Others". See the previous structure:

--------------------

The Group is organised into 2 reportable segments to reflect the nature of activities carried out by its business
units, as follows:

(i) Operations – provision of FPSO vessels, Floating Gas Solutions unit, OSV vessels, SC assets and marine
related services.

(ii) Others – consists of the following:

• Technology, Engineering and Projects – provision of engineering consultancy and project support
services.

• Corporate and others – Management services and corporate support services provided to subsidiaries
which are considered incidental to the Group’s operating business.

The above is from Bumi Armada's website which has just been recently updated. It looks like they have added a new business unit on "Gas Infrastructure", and splitting "Subsea Construction" from their "Operations" business unit.

It's unclear what "Gas Infrastructure" entails, if it includes FSRU and FLNG or is referring to gas pipelines etc.

But the fact that they are creating this category, means that it will be a substantial business unit going forward.

Bumi Armada Berhad provides services throughout the oil and gas value chain – from exploration through to field development construction, production and operations – via three central business units.

Business Units

1. Operations - The Operations business unit specialises in engineering, procurement, construction, commissioning, and the operations of floating oil and gas facilities as per the specific requirements of clients.

2. Gas Infrastructure

3. Subsea Construction

Having simultaneously managed and delivered several large projects safely, the company has developed a reputation for its project management capabilities. We deliver innovative solutions and quality facilities that incorporate leading technologies to cater to your needs in field development, production and storage.

As an integrated oilfield services provider wherever your company is, in terms of field development and production, Bumi Armada offers a range of capabilities from life of field surveys, production facilities, installation and operations. Drawing on our decades of experience we will bring innovative solutions to bear, provide quality facilities safely and services as well as incorporate leading technologies where appropriate.

https://mkefactsettd.maybank-ke.com/PDFS/341911.pdf

Opportunities being actively pursued but with no finalised announcement as of yet:

1) FSRU at Mumbai Port - 50:50 JV with SP Energy
2) FCSIU in the UK - 50:50 JV with Navigator Gas
3) FLNG at Madura field - unknown ownership
4) Akia Field Operatorship in Indonesia - 51:49 JV with Pexco Energy
5) FPSO + FLNG (TBC) at Akia Field - unknown ownership

Recent positive news:

1) Armada Kraken back to producing at 100%, with two new HSP transformers brought abroad the FPSO to increase redundancy
2) 1 year contract extension for Armada Sterling II in the Mumbai High sector

Impending positive news:

1) First oil at the KG 98/2 field

Other positive catalysts:

1) Contract extension at the Armada TGT field (official announcement might only come sometime next year)

Another beautiful official announcement, adding some additional information to what we've already known previously.

Bumi Armada stands to get 2 levels of benefits here:

1st level: 51% operatorship, i.e. 51% of the net profits for every barrel of oil (or gas equivalent) sold.
2nd level: Charter income from the lease of the FPSO + FLNG

It's interesting that there's potential for BOTH FPSO and FLNG here.

This is now the 4th official announcement in as many months of future intent, though nothing concrete as of yet. If they were all to take off...mama mia!

Bumi Armada Berhad (“Bumi Armada”), wishes to announce that its wholly owned subsidiary Armada Akia B.V (“AABV”) (as Operator with 51% participating interest) and its co-bidder, Pexco Tarakan NV (“Pexco”) (with 49% participating interest), have signed a Production Sharing Contract with the Ministry of Energy and Mineral Resources of Indonesia for the Akia PSC in the Tarakan Basin, North Kalimantan Province ("PSC").

The Akia PSC covers an area of 8,394 square kilometers and contains the Aster and Tulip oil and gas discoveries. The Tulip discovery has an estimated recoverable resource of 860 BCF of gas and 60 MMboe of oil and condensate. Plans are to acquire new 3D seismic over the Tulip discovery to evaluate the potential for a fast-track development. The water depth at the Tulip discovery is 800m and Bumi Armada would provide and operate an FPSO and an FLNG or gas pipeline for the development. This leverages Bumi Armada’s core expertise of providing and operating floating production systems.

The Pexco Group is an independent upstream exploration and production group of companies. It currently operates two Production Sharing Contracts in Indonesia.

The AABV and Pexco consortium signing the PSC is a related party arrangement. Objektif Bersatu Sdn Bhd ("OBSB"), a wholly owned subsidiary of Usaha Tegas Sdn Bhd ("UTSB"), has a direct 34.61% interest in Bumi Armada. Tatparanandam Anantha Krishnan is a major shareholder of Bumi Armada (by virtue of his deemed interest through, inter alia, UTSB and OBSB), and also holds a 100% indirect interest in Pexco. No related party transaction announcement is required to be made by Bumi Armada at this stage as the relevant percentage ratio has not been exceeded.

The announcement is dated 25 September 2023.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3387592