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Research by Public
Outperform – TP RM0.65

“Steady Performance"

Bumi Armada (BAB) posted 1QFY24 core net profit of RM249.6m, higher by 12.6% YoY due to bumper revenue from the Armada Olombendo Floating Porduction Storage Offloading vessel (FPSO) with an estimated amount of RM60m. On a QoQ basis, the result is weaker by 19.8% due to one-off income from the resolution of outstanding issues with Armada Kraken’s charterer. Nevertheless, the numbers are in line with our full year earnings forecast at 28.5% though exceeding consensus at 31.6%. On a positive note, there is also strong indication that the Armada TGT I contract, which is expiring by November 2024 would be extended given the charterer has announced two well drilling programs in the field. Meanwhile, Armada Sterling V 98/2 is scheduled to conduct final acceptance test by June 2024. All in, BAB will continue to register stable operating cash flow of RM315.3m and reduce its net-gearing to 0.56x. We maintain our Outperform call and TP of RM0.65.

Analyst:
Khairul Fahmi, CFA
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$KLSE-ARMADA
Research by Public
Outperform – TP RM0.65

“Steady Performance"

Bumi Armada (BAB) posted 1QFY24 core net profit of RM249.6m, higher by 12.6% YoY due to bumper revenue from the Armada Olombendo Floating Porduction Storage Offloading vessel (FPSO) with an estimated amount of RM60m. On a QoQ basis, the result is weaker by 19.8% due to one-off income from the resolution of outstanding issues with Armada Kraken’s charterer. Nevertheless, the numbers are in line with our full year earnings forecast at 28.5% though exceeding consensus at 31.6%. On a positive note, there is also strong indication that the Armada TGT I contract, which is expiring by November 2024 would be extended given the charterer has announced two well drilling programs in the field. Meanwhile, Armada Sterling V 98/2 is scheduled to conduct final acceptance test by June 2024. All in, BAB will continue to register stable operating cash flow of RM315.3m and reduce its net-gearing to 0.56x. We maintain our Outperform call and TP of RM0.65.

Analyst:
Khairul Fahmi, CFA
Khairul.fahmi@publicinvestbank.com.my