Stock Name: ARMADA
Company Name: BUMI ARMADA BERHAD
Bumi Armada Bhd
(Oct 3, RM 3.33)
Maintain neutral with fair value of RM3.65: Last Friday, Bumi Armada announced that its 100% subsidiary Armada Balnaves Pte Ltd (ABPL) has signed a floating, production, storage and offloading (FPSO) contract with Apache Energy Ltd, Australia. This signing was a follow-up from the conditional letter of award secured on March 30 this year from Apache Julimar Pty Ltd, a subsidiary of Apache.
Apache is an independent energy company in Australia that explores, develops and produces natural gas, crude oil and natural gas liquids.
The FPSO contract will be for the development of an FPSO to be operated by ABPL on the Balnaves field located in northern Carnarvon Basin, offshore north-west Australia. This contract shall be effective starting June 30, while the initial fixed time charter for four years with options for four annual extensions would probably start after this FPSO Armada Claire (previously known as Armada Prima) has completed its refurbishment by 1Q14. The value of the contract is about RM1.46 billion.
We believe more than 50% of the order book would be contributed by its FPSO division while the balance of about 30% would come from its offshore support vessel division and 20% from its transportation and installation division.
(Left) Bumi Armada CEO Hassan Assad Basma exchanging documents with Apache Energy Ltd MD Thomas M Maher at the signing ceremony between Bumi Armada and Apache. No change to our FY11-12 earnings. This is because we had earlier factored in the potential contribution from this FPSO based on the guidance given during the analysts' briefing earlier.
Our fair value for Bumi Armada remains unchanged at RM3.65 based on sum-of-parts valuation, which is also equivalent to a blended price earnings ratio of 18 times FY12. ' OSK Research, Oct 3
This article appeared in The Edge Financial Daily, October 4, 2011.
Company Name: BUMI ARMADA BERHAD
| Research House: OSK | Price Call: HOLD | Target Price: 3.65 |
Bumi Armada Bhd
(Oct 3, RM 3.33)
Maintain neutral with fair value of RM3.65: Last Friday, Bumi Armada announced that its 100% subsidiary Armada Balnaves Pte Ltd (ABPL) has signed a floating, production, storage and offloading (FPSO) contract with Apache Energy Ltd, Australia. This signing was a follow-up from the conditional letter of award secured on March 30 this year from Apache Julimar Pty Ltd, a subsidiary of Apache.
Apache is an independent energy company in Australia that explores, develops and produces natural gas, crude oil and natural gas liquids.
The FPSO contract will be for the development of an FPSO to be operated by ABPL on the Balnaves field located in northern Carnarvon Basin, offshore north-west Australia. This contract shall be effective starting June 30, while the initial fixed time charter for four years with options for four annual extensions would probably start after this FPSO Armada Claire (previously known as Armada Prima) has completed its refurbishment by 1Q14. The value of the contract is about RM1.46 billion.
We believe more than 50% of the order book would be contributed by its FPSO division while the balance of about 30% would come from its offshore support vessel division and 20% from its transportation and installation division.
(Left) Bumi Armada CEO Hassan Assad Basma exchanging documents with Apache Energy Ltd MD Thomas M Maher at the signing ceremony between Bumi Armada and Apache. No change to our FY11-12 earnings. This is because we had earlier factored in the potential contribution from this FPSO based on the guidance given during the analysts' briefing earlier.
Our fair value for Bumi Armada remains unchanged at RM3.65 based on sum-of-parts valuation, which is also equivalent to a blended price earnings ratio of 18 times FY12. ' OSK Research, Oct 3
This article appeared in The Edge Financial Daily, October 4, 2011.
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