ARMADA (5210) - Bumi Armada's rally hits speed bump
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| Since Feb 17, the share price had risen from 67 sen to a high of 79 sen. |
KUALA LUMPUR: Bumi Armada Bhd's share price, which had risen in active trade in recent days, saw it hitting a speed bump after Indian tycoon Shapoorji Pallonji Mistry resigned from the board.
At 11.20am, it was down two sen to 77 sen. There were 21.91 million shares done.
Since Feb 17, the share price had risen from 67 sen to a high of 79 sen on Wednesday.
The FBM KLCI rose 1.17 points to 1,709.25. Turnover was 1.04 billion shares valued at RM700mil. The broader market was weaker with 410 decliners to 253 advancers and 344 counters unchanged.
The oil and gas-related company announced on Wednesday that Mistry, who was a non-executive and non-independent director, had resigned from the board.
The news also gave traders an excuse to take profit.
Mistry is the chairman of the Shapoorji Pallonji group, a conglomerate involved in construction, real estate, infrastructure and renewable energy.
Bumi Armada's share price rose in recent days following fresh corporate news and the rebound in crude oil prices.
StarBiz reported analysts are expecting potential earnings upgrade for Bumi Armada, as a result of its floating, production, storage and offloading (FPSO) Armada Olembendo’s first oil success on Feb 8 and subsequently, FPSO Armada Kraken, which is on station and securely moored at the North Sea.
UOB Kay Hian Malaysia Research said the progress is in line with its expectation and that the FPSO Armada Kraken’s arrival in the Kraken field in North Sea removes investor concern of risk of further delay and the associated financial penalty charges.
“Although Bumi Armada’s fourth quarter of the financial year ended Dec 31, 2016 (Q4FY16) results (to be released end of this week) could be weak with potential impairments, the consistent positive newsflow in the progress for the new projects supports its long-term re-rating, which is now the focal point.
“We expect substantial improvement in cash flow and a doubling of the group’s profit base in 2017,” said UOB Kay Hian.
ARMADA (5210) - Bumi Armada's rally hits speed bump - The Star
http://www.thestar.com.my/business/business-news/2017/02/23/bumi-armada-rally-hits-speed-bump/
