Stock Name: ARMADA
Company Name: BUMI ARMADA BERHAD
Three research houses have maintained their 'buy' call on Bumi Armada Bhd due to its exciting start to the year, underlined by additional contributions from the Kraken floating production,
storage and offloading (FPSO) project, new offshore support vessels and progressive billings of its transportation and installation ventures.
Hwang DBS Vickers Research in its note said despite the company's disappointing fourth quarter financial year 2013 results, the earnings should normalise with the Kraken FPSO project, for a bigger impact starting from the first quarter of financial year 2014.
The international offshore oilfield services provider for the fourth quarter ended Dec 31, 2013 posted a lower pre-tax profit of RM87.401 million.
This is against the RM135.754 million in the same period a year ago, while recording higher revenue of RM556.714 million compared to RM477.768 million previously.
Hwang DBS Vickers also highlighted Bumi Armada's RM1.3 billion contract for the continued deployment of its Armada Perdana FPSO at the Oyo field, offshore Nigeria, for seven years from January 14.
Meanwhile, Alliance Research said Bumi Armada's earnings would also come from the Madura contract or even a contract from Angola, both of which the group has been quite positive on securing.
AmResearch, meanwhile, said the group's order book, including
options, had surged by 74 per cent from RM12.7 billion to RM22.1 billion, of which 60 per cent, are firm commitments.
Hwang DBS Vickers Research, Alliance Research and AmResearch maintained their 'buy' call on Bumi Armada with target prices of RM4.50, RM4.43 and RM5.15 respectively.-- Bernama
Company Name: BUMI ARMADA BERHAD
| Research House: ALLIANCE | Price Call: BUY | Target Price: 4.43 |
Three research houses have maintained their 'buy' call on Bumi Armada Bhd due to its exciting start to the year, underlined by additional contributions from the Kraken floating production,
storage and offloading (FPSO) project, new offshore support vessels and progressive billings of its transportation and installation ventures.
Hwang DBS Vickers Research in its note said despite the company's disappointing fourth quarter financial year 2013 results, the earnings should normalise with the Kraken FPSO project, for a bigger impact starting from the first quarter of financial year 2014.
The international offshore oilfield services provider for the fourth quarter ended Dec 31, 2013 posted a lower pre-tax profit of RM87.401 million.
This is against the RM135.754 million in the same period a year ago, while recording higher revenue of RM556.714 million compared to RM477.768 million previously.
Hwang DBS Vickers also highlighted Bumi Armada's RM1.3 billion contract for the continued deployment of its Armada Perdana FPSO at the Oyo field, offshore Nigeria, for seven years from January 14.
Meanwhile, Alliance Research said Bumi Armada's earnings would also come from the Madura contract or even a contract from Angola, both of which the group has been quite positive on securing.
AmResearch, meanwhile, said the group's order book, including
options, had surged by 74 per cent from RM12.7 billion to RM22.1 billion, of which 60 per cent, are firm commitments.
Hwang DBS Vickers Research, Alliance Research and AmResearch maintained their 'buy' call on Bumi Armada with target prices of RM4.50, RM4.43 and RM5.15 respectively.-- Bernama
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