RHB positive on this share. If full year eps is 12 cents, P/E still low. In the Star, positive news as they are still able to sell ships, tugs, etc. Am averaging down to lower cost.
The best way to take advantage of this contradiction is to buy international provider of supporting services to the oil and gas industries.
The next 2 3 years results of this type of company is insulated againt the drop in oil prices as it has very long term contracts signed but yet somehow its share price had been badly battered down by panic selling due to unrelated reasons such as those quoted in The Star article.
Get it or not? The share price had dropped badly and factored in the doom but a boom may well be waiting just around the corner.
The share price had dropped a lot and will not drop anymore. You buy now the risk is low. But, the return will be fantastic if this author is even just slightly right.
BUY ARMADA! BUY BUMI ARMADA!!!! 22/10/2014 18:15 22/10/2014 18:24
AhMoi TP by RHB RM 2.24 Maintain BUY
Earnings outlook. After our meeting with management, we received more clarity on how Bumi Armada books in earnings, especially for the bigger FPSO projects. During vessel conversion years, the company will only book in minimal earnings into its books to be more in line with risk, as the risk of not completing the project decreases as the project passes a certain stage of completion. Once the vessel is completed and deployed, Bumi Armada would start booking in the daily charter rate of the vessels into revenue. We believe the bulk of Bumi Armada’s earnings for its FPSOswill start to materialise in late-FY15/FY16 as all vessels currently under conversion would be deployed and produce their first oil then. We estimate the FPSO segment earnings would grow by 34%/77% in FY15/FY16 respectively.
For its OSV segment, we estimate earnings in FY15 to grow by 15%, driven by the delivery of two new MPSV, while growth in FY16 will be slightly muted at 4% y-o-y as Bumi Armada winds down its fleet rejuvenation programme. For its T&I segment, we expect 12% growth in FY15, as the Engineering, Procurement, Construction and Commissioning (EPCC) as well as the pipe-laying contracts go into full swing, but earnings in FY16 could take a hit as management expects both contracts to be completed by end 4QFY15. However, Bumi Armada believes it could be receiving more contracts for work in the Caspian Sea region as the exploration and production expertise there is still under-developed.
Note that we have not imputed any new awards for its T&I and OFS segment, and we believe potential earnings upside in FY15/FY16 would come from these two divisions.
Maintain BUY with a fully-diluted SOP FV of MYR2.24.
We revisited our FY14/FY15 earnings forecasts after accounting for the lower earnings recognition from new FPSOs in their vessel conversion years. We have also revised our earnings assumptions for the T&I segment. Overall, we raise our FY14 EPS estimate by 5% as we tweak our assumptions for the Lukoil pipe-laying contract in the Caspian Sea, but we cut our FY15F forecast by 20% as we adjust for the minimal earnings booked in during conversion years for the new FPSOs. Nevertheless, we continue to expect FY15/FY16 EPS growth of 4%/12% respectively, driven by T&I works in the Caspian Sea as well as producing FPSOs. With our new forecasts, we estimate a new fullydiluted SOP FV of MYR2.24 (from MYR2.59 ex-all previously). We advise investors to subscribe to the rights issue as the proceeds will be utilised to propel the growth of Bumi Armada going forward. We also reiterate our positive view on floating production systems and believe that Bumi Armada is in a good position to take advantage of the continuous demand for FPSOs.
23/10/2014 09:18 X
AhMoi The price has dropped too much....
23/10/2014 09:21 X
AhMoi Going up now....
1 st Target 1.53 next 1.64 next 1.76
AhMoi O&G companies are fundamentally intact
they are all service providers which do not directly derive their revenue from the sale of oil,”
And since we have gone down so much, people may want to take the opportunity to buy,”
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
probaby
438 posts
Posted by probaby > 2014-10-17 17:32 | Report Abuse
i don want check in Tas luxury cruise...