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IPO Info Key Data:
Prospectus: INITIAL PUBLIC OFFERING OF UP TO 878,538,600 ORDINARY SHARES OF RM0.20 EACH IN BUMI ARMADA BERHAD ("BUMI ARMADA") ("SHARES") COMPRISING: (I) OFFER FOR SALE OF UP TO 234,277,000 EXISTING SHARES ("OFFER SHARES") COMPRISING: • THE INSTITUTIONAL OFFERING OF UP TO 234,277,000 OFFER SHARES TO BUMIPUTERA INVESTORS APPROVED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY ("MITI") AT THE INSTITUTIONAL PRICE TO BE DETERMINED BY WAY OF BOOKBUILDING ("INSTITUTIONAL PRICE"); AND (II) PUBLIC ISSUE OF UP TO 644,261,600 NEW SHARES ("ISSUE SHARES") COMPRISING: • THE INSTITUTIONAL OFFERING OF UP TO 564,400,200 ISSUE SHARES TO MALAYSIAN AND FOREIGN INSTITUTIONAL AND SELECTED INVESTORS, INCLUDING BUMIPUTERA INVESTORS APPROVED BY MITI AT THE INSTITUTIONAL PRICE; AND • THE RETAIL OFFERING OF 79,861,400 ISSUE SHARES TO THE MALAYSIAN PUBLIC, THE DIRECTORS OF BUMI ARMADA, AND ELIGIBLE EMPLOYEES AND PERSONS WHO HAVE CONTRIBUTED TO THE SUCCESS OF BUMI ARMADA AND ITS SUBSIDIARIES AT THE RETAIL PRICE OF RM3.15 PER SHARE ("RETAIL PRICE"), PAYABLE IN FULL UPON APPLICATION AND SUBJECT TO A REFUND OF THE DIFFERENCE IN THE EVENT THAT THE FINAL RETAIL PRICE IS LESS THAN THE RETAIL PRICE, SUBJECT TO THE CLAWBACK AND REALLOCATION PROVISIONS. THE FINAL RETAIL PRICE WILL EQUAL THE LOWER OF (I) THE RETAIL PRICE; AND (II) THE INSTITUTIONAL PRICE.
  nikicheong In the upcoming weeks/months, we can expect some wins from the current projects being worked on. 1. Shell FSIU 2. Bluestreak FCSIU 3. Madura FLNG 4. Mystery FSRU 5. Mystery Indonesian CCS project 6. Abadi Onshore Gas Plant 7. Pipelay Contract for SC Vessels in Caspian Sea 8. Multi-year extension for TGT FPSO 9. Multi-year extension for Sterling II FPSO For items 1 to 6, we should hope to secure 2 to 3 contracts. If we hear nothing about these by the end of the year, assume we’ve failed to secure them. Item 7 will be a huge win as the revenue will mostly translate to net profit gains, given that the vessels are cold stacked and costing the company every month (plus depreciation). Item 8 and 9 are expected. Not getting either will be a big loss. We won’t see a new FPSO win for the next year or so as Bumi Armada doesn’t have any serious prospects at the moment. 07/04/2024 11:14 PM  Robert Waters Here are the catalysts from a year ago. I publish for long term investors to assess what was achieved. ____________________________________________ Potential Bumi Armada Re-rating catalysts: 0) Repair of the Kraken FPSO's HSP Charge Pump Transformers so the FPSO can return to full operational capacity (Kraken FPSO presently only running at 100% capacity). Without this pre-condition met there cannot be confidence in BA ability to deliver and operate facilities. New wins (most significant items 1 - 5): 1) Award of Cameia FPSO project in Angola from Total Energies - This is only an EPCC contract that will sustain earnings for 2-3 years. This is NOT a long-term charter contract (BOO). However; it could be valued up to 1 bln myr.No financing / rights issue needed. 2) Major FPSO contract win (large scale FPSO, likely with a JV partner) - Unlikely to happen soon as there are no known large scale bids from Bumi Armada, but possibilities exist in West Africa / South America with market rather tight in terms of supply as many suppliers are overextended. Conoco Phillips at Salam Petawali, Kelidang in Brunai or Limbayong. 3) Minor FPSO contract win (either a small/medium scale FPSO, 100% owned) - Active bids in Tuna field (Indonesia) and Palok field (Mexico). In Malaysia, Bestari (Sabah) could be an option, building upon Limbayong negotiations. 4) Non-FPSO contract win (either 100% owned or JV) - e.g. FSRU, FSU, FSO - The Mumbai Port FSRU project has been deferred. No other publicly known bids for now. ESG funding at preferred rate may be available. 5) New contract win for the 2 SC vessels in the Caspian Sea and 1 JV-owned SC vessel in Indonesia. Potential for new wins for the Caspian Sea vessels is high as flurry of work in the region exists due to high oil price environment. Lukoil gave contract to BAB in 22, also paid OSV despice sanctions. All 3 vessels as of 31 Dec 2022 were laid up. Alternative to contract for the Caspian Sea work: sale, move assets home, contract elsewhere. Other positive developments (items 6 - 10): 6) Green energy goals (leading to ESP score upgrades and ESG rerating up to 6% by IB): a) "Green energy" initiatives for future FPSO/non-FPSO wins (e.g. zero flaring or fully electrified FPSO) b) Decarbonisation for existing fleet of FPSO c) Diversification into floating CCS and other "green" structures 7) Business as usual objecties: a) Full acceptance of Armada Sterling V FPSO by ONGC at the 98/2 field in India b) Confirmation of sale or scrapping of Armada Claire FPSO (Done) c) Full divestment of the remaining offshore vessel (Done) 8) Contract extensions: a) Positive development at the Kraken field, such as drilling of the Kraken Western flank or tieback to the nearby Bressay and Bentley fields - This would signal long-term contract extension for Armada Kraken FPSO which is due to expire in Q3 2025. For now, EnQuest has indefinitely deferred drilling due to commence in 2023 because of the newly introduced windfall tax in the UK. Also, excessive drilling may lead to adopting new solution by EnQuest. Existing setup satisfactory with 0.5 mln USD bare boat charter. b) Confirmation of contract extension for Armada TGT FPSO in Vietnam - Might only be announced in Q4 2024, but it's all but certain the contract will be extended as new wells are still being pursued in the aged TGT field. (jPending). c) Contract extension of Armada Sterling II (due in Q4 2024). Achieved for only 1 year at lower rate than original contract. 9) Positive Financials: a) QR of 3+ sens b) IB re-rating to RM 0.90 c) Gearing down to around 0.5 d) Counter price increase to > RM 1 (no more penny stock discount) causing institutional, foreign and private equity / family trust buying. 10) Improved distribution of the stock: a) Involving more large / public investors, institutional buying by means of formal inclusion in KLSE index, sector index, ESG rating, pension fund committment, etc (other than just by not being a penny stock). b) Company presentations to the investors overseas, e.g. USA, resulting in purchases by 'deep pocket' significant shareholders at > 5%. c) Significant insider's buying as a sign of confidence. So far, only the president has been making steady investment. Bonus general catalysts that can be included in the score as well, independent of BAB: 11) Positive oil and gas industry fundamentals a) Oil price at > 100 USD per barrel b) Commodities supercycle with basic commodity prices firming up overall, even if oil < 100 USD c) China recovery d) Strategic Petroleum Reserve buying in the US e) Interest rates going down substantially, 2% for 10 year US Treasure Bond 08/04/2024 12:41 PM nikicheong Walao last year's report card would've failed. They failed to achieve anything significant. Most important thing they achieved was stabilization of the Kraken FPSO. 08/04/2024 3:06 PM Robert Waters Agree Niki. Those were your catalysts, with some comments by me and others put together in one post. Many thanks for providing them and commenting. There should not have been Kraken problem in the first place, but they still deserve credit. 09/04/2024 12:19 AM vespa just about three weeks ago net shorts was 55 million it is now at at about half at 26 mil. ie positive. It is just another metric to consider 09/04/2024 6:52 AM nikicheong Keep an eye out for this: https://www.upstreamonline.com/exclusive/singapore-player-kicks-off-bid-battle-for-prized-asian-gas-fpso/2-1-1623122 Singapore-headquartered Jadestone Energy has launched the bid process for a prized floating production, storage and offloading vessel required for its Nam Du and U Minh (NDUM) gas fields development offshore Vietnam. The much-delayed shallow water development had been very close to sanction pre-Covid, but the operator is not expecting there to be much of a capex increase despite the passing years, Upstream has learned. 09/04/2024 11:48 AM nikicheong For further reading: 1. www.jadestone-energy.com/wp-content/uploads/2024/01/20240126-Vietnam-NDUM-Project-Overview-vF.pdf FID is expected in mid to late 2025. So still over a year to go. 09/04/2024 11:52 AM nikicheong 2. www.jadestone-energy.com/gas-sales-heads-of-agreement-signed-for-nam-du-u-minh-fields-offshore-vietnam/ 09/04/2024 11:52 AM nikicheong This is a medium-sized gas FPSO that should be of strong interest to Bumi Armada. Might even drive cost synergies with their existing operations in Vietnam (i.e. TGT FPSO). 09/04/2024 12:09 PM Cockcroach The person bought such a big chunk. He wants to guarantee himself that hr got those 4+ mil lots before Raya 09/04/2024 6:48 PM Gabriel Khoo https://www.telegraph.co.uk/business/2024/04/09/biggest-north-sea-oil-find-in-decades-drilled-first-time/ 10/04/2024 2:16 PM daretocutandchange hibiscus same situation too,last minute buying ordered at 2.8 suddenly up from 2.73 10/04/2024 4:49 PM nikicheong Well it that case, might've been some last minute sector rotation in to O&G stocks, perhaps on a bet that crude price will continue rising over the Raya break. 10/04/2024 6:19 PM rohank71 Hold BA ... only cut loss at 58... upside can be very good.... it has been gradually moving which is very good vs a spike which most traders prefer. 10/04/2024 11:00 PM rohank71 true #cockroach... but that's what TA is all about. if bounce back to 59.5 buy back at 60. just like right now, the shorties need to cover the short positions as it has gone above long-term resistance of 58. 11/04/2024 10:57 AM nikicheong New Indonesian FPSO tender: https://www.upstreamonline.com/field-development/feed-tenders-launched-for-platform-and-floater-for-indonesian-oilfield-development/2-1-1624929 Bumi Armada's experience with the Kraken heavy oil field might give them an advantage here. But it's possible that this project might not be financially sound. 11/04/2024 2:09 PM steady31 UK EnQuest 's Bressay new oil discovery of up to 600m barrels of oil so near to Kraken that it is conceivable that Armada's kraken FPSO may be engaged to process and export its newfound oil 11/04/2024 5:16 PM steady31 https://www.telegraph.co.uk/business/2024/04/09/biggest-north-sea-oil-find-in-decades-drilled-first-time/ 11/04/2024 5:21 PM nikicheong Bressay gas tieback to Kraken FPSO will cost GBP60mil. Some of this will go to Bumi Armada as they will play a key role in the tieback to the FPSO. 11/04/2024 9:11 PM nikicheong Kraken diesel consumption to reduce by 80% with this measure. Currently, diesel spend at Kraken FPSO is around GBP30mil per annum. 11/04/2024 9:31 PM nikicheong Enquest will consider purchasing the Kraken FPSO - depending on the situation at the time. But negotiations / discussions on this are ongoing. 11/04/2024 9:37 PM nikicheong The Enquest's investor meet was very positive on the Kraken development, upcoming Bressay gas tieback, and future Bressay and Bently oil tie back to the Kraken production hub. 11/04/2024 10:16 PM Gabriel Khoo https://www.ogv.energy/news-item/enquest-to-drill-biggest-north-sea-oil-field-in-20-years 13/04/2024 12:31 PM bullrun168 If Iran attacks Israel, Middle East turmoil could lift oil past $100 a barrel Published: April 12, 2024 at 1:22 p.m. ET By Myra P. Saefong https://www.marketwatch.com/amp/story/if-iran-attacks-israel-middle-east-turmoil-could-lift-oil-past-100-a-barrel-fd76ea09 Oil prices could rise by $15 a barrel if all of Iran’s output is interrupted: analyst Oil traders know the all-too-familiar drill: Heightened tensions in the Middle East have led to a rally in prices — so far to the highest intraday levels in six months. If Iran, one of the world’s largest oil producers, gets directly involved, however, a return to prices of more than $100 a barrel may soon follow. “Nobody wants to be short heading into the weekend,” said Manish Raj, managing director at Velandera Energy Partners. “If the conflicts escalate over the weekend, short sellers will lose their shirts when they wake up on Monday.” What’s happened An April 1 airstrike on Iran’s consulate in Syria, which Tehran has attributed to Israel, killed seven Iranian military officers and prompted a vow of retaliation from Tehran. Since the start of the war in Gaza in early October, there has been a rise in clashes between Israel and Iran-backed Hezbollah militants based in Lebanon. Hamas, which governs Gaza and launched the Oct. 7 attack on southern Israel, is also backed by Iran. News reports have said that an Iranian attack on Israel is believed to be imminent, with the Wall Street Journal reporting the possibility of an attack as soon as Friday or Saturday. The U.S. Embassy in Jerusalem issued a travel advisory on Thursday, warning U.S. citizens in Israel against travel outside of major cities such as Tel Aviv. John Kirby, the Biden White House’s adviser for national-security communications, told reporters Friday that the administration is “certainly mindful of a very public, and what we consider to be a very credible, threat made by Iran in terms of potential attacks on Israel,” and that it was watching developments “very, very, very closely.” Oil rally Prices for oil have climbed so far this month alongside the rising tensions in the Middle East, with U.S. benchmark crude futures trading 5% higher and global benchmark Brent crude gaining closer to 6%. In Friday dealings, May West Texas Intermediate crude CL.1 CLK24 was up 76 cents, or 0.9%, to trade at $85.78 a barrel on the New York Mercantile Exchange after trading as high as $87.67, while June Brent crude BRN00 BRNM24 climbed 90 cents, or 1%, to $90.64 on ICE Futures Europe following a high at $92.18. Both touched their highest intraday levels since October. 14/04/2024 9:56 AM nikicheong Might be good time to exit if Bumi Armada's share price spikes up in the coming week due to macro factors, namely MidEast tension and the ensuing spike in crude oil prices. Note: This applies for those who've lost faith in the company's future potential. However, this might also be a pivotal moment as a contract award / extension or other key announcement (such as debt refinancing) might just be around the corner. 14/04/2024 2:32 PM marlboroman2 TASI Tadawul Saudi market index which reopened today on Sunday after the long Eid holidays was rather muted (dived down at the opening hour but had clawed back almost all points towards the closing) 14/04/2024 9:10 PM nikicheong Potentially negative news: https://www.upstreamonline.com/finance/uk-north-sea-producer-waldorf-facing-liquidity-concerns/2-1-1626872 15/04/2024 5:38 PM Gabriel Khoo Nik. I think its still managable given that the JV only 1/4 even if the field is to be liquidated 15/04/2024 6:43 PM Gabriel Khoo https://www.energyvoice.com/oilandgas/551730/waldorf-prodution-no-comment-on-liquidity-woes/ 16/04/2024 12:20 AM Gabriel Khoo https://www.energyvoice.com/oilandgas/551730/waldorf-prodution-no-comment-on-liquidity-woes/ 16/04/2024 12:20 AM zonefinder Looks like its mostly the retail sellers. Large and institutionals are buying ie inflows. Wonder if its reaction to Iran lobbing drones and missiles into Israel and possible reaction from latter. 16/04/2024 11:27 AM Ninja _07 Other O&G counters rebounded. Armada's drop could be a mixture of: (Geopolitical + Waldorf) = then must watch closely the price movement as most likely price will be shaken a bit; (Geopolitical Only) = then the price will rebound back to 0.62 16/04/2024 2:06 PM steady31 There is not going to be a problem from 29.5% owner Waldorf..EnQuest which holds 70,5% can easily pick up any shortfall as it has just struck 2 huge oilfields in Bressay and Bentley .Just buy low now and sell at 0.68 16/04/2024 5:12 PM ITreeinvestor Is there any news regarding the final acceptance of Sterling V? It is expected to be completed this month. 17/04/2024 10:36 AM nikicheong Sterling V acceptance is not happening this month. Still 3 to 6 months away, at minimum. 17/04/2024 10:56 AM rohank71 back to 58... must NOT break or else the uptrend is over...wait for next one. 18/04/2024 9:23 AM  | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
