Posted by nikicheong > 1 month ago | Report Abuse

One could say, that we are overdue some good news.

Posted by nikicheong > 1 month ago | Report Abuse

TGT FPSO extension announcement is imminent.

Posted by spencer628 > 1 month ago | Report Abuse

niki ,confirm will extension ?

Posted by nikicheong > 1 month ago | Report Abuse

Yes, just wait for the announcement.

Posted by Gabriel Khoo > 4 weeks ago | Report Abuse

Nik. Do you receive any news of BAB particioating in new project

Posted by nikicheong > 4 weeks ago | Report Abuse

Not that I'm aware of. Is there any? I have shared whatever I know they are participating in but so far unaware of any wins.

Posted by Macgyver111 > 3 weeks ago | Report Abuse

Actually, buying energy stock is like what Malay said, "telur di hujung tanduk." One day green and promising, like going to limit up another day red until speechless. Not only Armada but almost every energy counter like velesto, perdana, and yin soon, and few of it as example...pening pening 😂😀😂😀😂. My black hair turned grey ready tunggu ni counter pecut...kena sabar banyak.

Posted by Macgyver111 > 3 weeks ago | Report Abuse

Balik balik 0.50, balik balik 0.50...🙆🙆🙇🙇🙇

Posted by nikicheong > 3 weeks ago | Report Abuse

Good news, TGT drilling campaign is over and the Wells are successfully tied back to the FPSO.

Posted by RayLee > 3 weeks ago | Report Abuse

... Maybank Investment Bank Bhd has maintained a BUY call on the company, with an unchanged sum-of-parts-based target price of 68 sen ...

https://www.businesstoday.com.my/2024/10/29/analysts-optimistic-on-bumi-armadas-growth-potential-with-improved-esg-practices/

Posted by Gabriel Khoo > 2 weeks ago | Report Abuse

Bumi Armada Berhad ("Bumi Armada") wishes to announce that its wholly owned subsidiary Bumi Armada UK Limited (”BAUK”) entered into an Engineering, Procurement, Construction, Installation and Modification agreement with EnQuest Heather Limited (“EnQuest”) on 29 October 2024 for the provision of a Flare Gas Recovery System on the Magnus platform located in blocks 211/12a and 211/7a of the UK North Sea (“the Agreement”). The Agreement is expected to be carried out over approximately four (4) years with an estimated contract value of GBP50 million.



Implementing the Flare Gas Recovery System offers environmental benefit, as well as operational value. The capture and repurposing of flare gas will reduce Magnus platform greenhouse gas emissions, specifically CO2 and Methane, which are major contributors to climate change. This aligns with global environmental standards and regulations, helping EnQuest to meet its internal and externally committed emissions reduction targets.

Posted by nikicheong > 2 weeks ago | Report Abuse

Finally! Something relatively small, but something nonetheless. Conservatively, this would be worth around RM25-30mil if the net margin is ~10%, i.e. around 0.4 to 0.5 sen per share.

Posted by nikicheong > 2 weeks ago | Report Abuse

Now the major announcement on the extension of the TGT FPSO should be imminent (within next 2 weeks for sure). That should contribute around 2 sen per share for every year of extension.

Posted by Robert Waters > 2 weeks ago | Report Abuse

An interesting project. Based on my knowledge - it has NOTHING to do with carbon capture. It is all about reprocessing gas that goes to flare and using it (for fuel?).

Posted by nikicheong > 2 weeks ago | Report Abuse

Yes, it's all there in the statement.

"The capture and repurposing of flare gas will reduce Magnus platform greenhouse gas emissions, specifically CO2 and Methane"

Posted by Robert Waters > 2 weeks ago | Report Abuse

As per general description of similar
Gases pass through a compressor and then go to a separator to remove any liquids. The gases then leave the separator, are cooled, and go to a drum to remove any condensates before heading back to the plant or facility for reuse.

Posted by Gabriel Khoo > 2 weeks ago | Report Abuse

Robert. Would you mind to explain the complexity bwteen CCS and FGRS

Posted by Gabriel Khoo > 2 weeks ago | Report Abuse

https://www.theborneopost.com/2024/10/31/up-to-rm200-bln-investments-projected-for-kuching-low-carbon-gas-hub-says-premier/

Oppoftunity?

Posted by Robert Waters > 2 weeks ago | Report Abuse

Gabriel,
CCS is very complex and state of the art. BAB will have to tackle great challenges. There will be cryogenic temperatures (C02 needs to be liquefied for injection). Also, very high pressure are needed, e.g. 300 bar or more. In comparison, FGRS involves tanks, compressor, piping and valves. Nothing unusual.

Posted by nikicheong > 2 weeks ago | Report Abuse

Gabriel, Bumi Armada is working with Shell on pre-FEED studies relating to CCS offshore Sarawak. This has been going on since mid 2022. However, unsure when (if at all) there will be any formal award.

Posted by Gabriel Khoo > 2 weeks ago | Report Abuse

Thanks Nik and Robert

Posted by Robert Waters > 2 weeks ago | Report Abuse

You are welcome. I am now working in a refinery in Iraq (upgrading), so a bit out of touch with upstream where armada acts, but still keeping abreast with the FPSO developments. If only they got their stuff together, there is money to be made.

Posted by nikicheong > 2 weeks ago | Report Abuse

Discussions surrounding Malaysian shipping giant MISC’s potential acquisition of compatriot floating production, storage and offloading (FPSO) vessel contractor Bumi Armada have resurfaced, with Upstream's sources hinting that an official announcement may be imminent, possibly within the next one to two weeks.

Posted by nikicheong > 2 weeks ago | Report Abuse

https://www.upstreamonline.com/rigs-and-vessels/malaysian-fpso-mega-merger-talks-heat-up-will-a-deal-be-struck-this-time-/2-1-1734699

Posted by ITreeinvestor > 2 weeks ago | Report Abuse

Niki, Can share full article ?

Posted by nikicheong > 2 weeks ago | Report Abuse

I don't have the access.

Also they're speculating the announcement is imminent within the coming couple of weeks. Yet, zero price action.

Not sure how credible this is, I did some checks with friends in IBs, no one has heard anything.

Posted by spencer628 > 2 weeks ago | Report Abuse

that upstreamonline ,need to pay money only you can read the whole things ..

Posted by spencer628 > 2 weeks ago | Report Abuse

itree, got ppl share at klse armada there already ,i think that is the full article

Posted by ITreeinvestor > 1 week ago | Report Abuse

Discussions surrounding Malaysian shipping giant MISC’s potential acquisition of compatriot floating production, storage and offloading (FPSO) vessel contractor Bumi Armada have resurfaced, with Upstream's sources hinting that an official announcement may be imminent, possibly within the next one to two weeks.

A potential deal would significantly bolster MISC’s position in the FPSO market, granting the company access to a larger, more diverse fleet of operational units as well as a pipeline of ongoing projects.

These negotiations first came to light in July when Malaysian media revealed that MISC, a subsidiary of national energy giant Petronas which holds the majority 51% interest, was in talks to acquire a “substantial stake” in Bumi.

MISC at the time downplayed the speculation, stating that it “actively explores investment opportunities that could add value for its shareholders" although an informed source told Upstream that these negotiations had, in fact, started early in 2024.combined entity would allow MISC to benefit from economies of scale, streamline operations and enhance its competitiveness in the global FPSO market. By pooling resources, the two companies could also improve their ability to secure long-term contracts with oil and gas operators and expand their portfolio, increasing their chances of winning future tenders.

“There will be significant synergies in operations, maintenance and project execution,” said one FPSO industry expert based in Singapore.

“By combining assets, the companies could reduce costs, optimise asset utilisation and boost project delivery efficiency.”

The merger would also offer strategic access to key offshore regions. Bumi Armada has a strong presence in regions including Southeast Asia, India and West Africa — markets where FPSO operations are critical to offshore oil and gas production. The tie-up would enable MISC to strengthen its footprint in these high-demand areas.

Beyond operational synergies, the deal could diversify MISC’s revenue streams. While the shipping behemoth is primarily known for its liquefied natural gas carrier and tanker businesses, an expanded FPSO portfolio could provide stable cash flows from long-term lease arrangements, serving as a hedge against volatility in other sectors of the energy market.

In response to Upstream's query on the matter, MISC said: "We do not respond to speculation.

"Rest assured, we will communicate with relevant stakeholders if and when there is material development in any of the various opportunities we explore as part of our ordinary course of business."

At the time of publication, Bumi Armada had not responded to Upstream's request for formal comment.

Posted by nikicheong > 1 week ago | Report Abuse

Nothing specific or damning. Makes sense, the synergies are there for all to see. Bumi Armada is a cash cow. In the absence of material new projects, shareholders can expect dividends of between 5 to 8 sen per share next year onwards through to 2030.

Posted by daretocutandchange > 1 week ago | Report Abuse

I prefer takeover than buying some assets from armada

Posted by leeabraham > 1 week ago | Report Abuse

AmInvestment Bank Equity Research 8 November 2024
🛢⛽ O&G
MISC (HOLD, TP: RM8.60), Bumi Armada (NR)
Our view on MISC-Bumi Armada tie-up

- Rumour mill heats up for MISC-Bumi Armada acquisition. Yest Upstream reported discussions are progressing towards a final deal, to be announced by end-Nov. Insiders say they are pooling FPSO assets, but others claim an acquisition is more likely. Rationale is to help the former pursue more tenders and an internal push to be more regionalised. We see 3 possibilities (a) JV co, (b) Merger, or (c) Stake-Sale of AK's shares.

- We share market's bearish sentiment over the deal. Though admittedly there are operational synergies - both are FPSO players - we do not see additional value beyond. Though BAB FPSO orderbook stands at RM23bil up to 2041, but nearly half are entering its option period over the next 5-years. The regional exposure is rather limited, with only 1 vessel in hotly contentested regions (Angola). Aside, our channel checks do not indicate any new prospects or tender submissions other than the extension of FPSO Armada TGT 1.

- A merger based-deal may problematic for post-MISC balance sheet. We are concerned if both balance sheet are combined. Though BAB has reduced its net gearing to 0.4x vs 1.3x in 2022, it has a large 6-year US$400mil (or RM1.8bil) which we think is unsecured or tied project cashflows (signing by 3Q24). Additionally, the group also has future commitments in Akia PSC which has started 3D seismic surveying.
- A stake-sale for AK's share may see MISC punished by shareholders. Our ground checks with investors sees very poor reception for this as it may appear as a bailout for AK who has been trying to exit since 2015. AK currently holds 34.58% effective stake, so not enough to trigger an MGO.

- Clear winner for BAB investors, and stay put on MISC. Investors tied up in BAB should take the opportunity to sell on +ve newsflow, as the deal is a clear win for BAB rather than MISC. We think any purchase consideration for investors to digest must be a % discount to fair value. Our est indicate this is at RM0.60 per share, or RM1.2bil for AK's shares. MISC currently has a net debt position of 0.2x, with RM7.3bil in cash balances.

Posted by nikicheong > 1 week ago | Report Abuse

Damn RM0.60 per share. I prefer to have just AK exit and MISC drive the company forward, probably by also then injecting it's FPSO assets into Bumi Armada.

Posted by Robert Waters > 1 week ago | Report Abuse

Is fair value RM 0.60, to which discount needs to be applied to facilitate the deal ?

Interestingly enough, when rumours first surfaced BAB reached this exact price of RM 0.60, but only for a few days.

Posted by nikicheong > 1 week ago | Report Abuse

RM0.60 is the discount to fair value.

Not sure what their estimate of the fair value is, but it should be in the RM0.70 to RM0.80 range.

Posted by Gabriel Khoo > 1 week ago | Report Abuse

My view is at least 80c

Posted by ocbc > 1 week ago | Report Abuse

No $1 no sell. Strong cash flow due to limited supply and market demand.

Posted by daretocutandchange > 1 week ago | Report Abuse

maybe exchange share 10 or 9 armada to 1 of misc,so misc cash in hand won't affected

Posted by Robert Waters > 1 week ago | Report Abuse

I think that could very well be the case. Issue shares and let investors worry if they are being sold at lower price. Probably we could get more of nominal value at the time of the deal.
Value paid in cash = RM 0.60. Alternatively,
Value given as shares = RM 0.70.

All speculation on my part.

Posted by nikicheong > 1 week ago | Report Abuse

RM0.60 is likely to be the price to Ananda for his stake. If they want to take over the entire company, that's a poor offer to the rest of the market, especially minority shareholders.

Ananda has to dispose at a discount due to his large stake.

Posted by ocbc > 1 week ago | Report Abuse

FPSO selling at US$1.26 billion ( RM$5.4 billion) , Bumi Armada got 7 FPSOs !
https://www.offshore-energy.biz/exxonmobil-doles-out-1-26-billion-for-fpso-operating-off-guyana/

Posted by ocbc > 1 week ago | Report Abuse

November 10, 2023, by Melisa Čavčić
U.S.-headquartered energy giant ExxonMobil has paid around $1.26 billion to SBM Offshore, a Dutch FPSO operator, for a floating production, storage, and offloading (FPSO) vessel, which is working on the oil major’s first oil development project located off the coast of Guyana.

Posted by nikicheong > 1 week ago | Report Abuse

ocbc, that is one of the largest fpsos around. Bumi Armada's meanwhile are mostly smaller and mid sized FPSOs that are 7 to 15 years of age.

Posted by ocbc > 1 week ago | Report Abuse

@nikicheong , thks for the feedback. Instead of RM$5b per FPSO , adjust it low low to RM$1.5b per FPSO x 7 = RM$10.5b, now market cap only RM$2.9b , current price is great deal to MISC !

Posted by Fieldbus > 1 week ago | Report Abuse

https://www.upstreamonline.com/rigs-and-vessels/malaysian-fpso-mega-merger-talks-heat-up-will-a-deal-be-struck-this-time-/2-1-1734699

Posted by nikicheong > 1 week ago | Report Abuse

ocbc the FPSOs are all under RM1bil except Olombendo which is worth RM2bil

Posted by Gabriel Khoo > 1 week ago | Report Abuse

Oeyvind Lindeman: With the Uniper MoU, they are currently now going and evaluating the current work that we’ve done with them. It is a pre-FEED study. And then their plan is to go into FEED study at some point during next year. In parallel, the U.K. government needs to put into regulation to support carbon capture shipping sequestration for the CO2. So it’s a process that takes time. All going well, maybe something next year, but it takes them 3, 4 years to actually construct all the infrastructure pieces that needs to go into it. So it’s towards the end of the decade, all going well where things can be ribbon cut and revenue generated. So stay tuned, but it’s a longer game.

Posted by Gabriel Khoo > 1 week ago | Report Abuse

From navigator earnings briefing Q&A

Posted by nikicheong > 1 week ago | Report Abuse

It's really a wonder how you can get more information from following their partners (Enquest, Pharos Energy, Navigator Gas, even ONGC) than you can get from Bumi Armada directly.

Posted by nikicheong > 1 week ago | Report Abuse

In any case, the TGT FPSO charter expires on 14th Nov 2024. The announcement is coming, hang in there boys.