Friday, January 18, 2019
https://louisesinvesting.blogspot.com/2019/01/comments-on-bumi-armada-berhad-5210.html
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FIGURE 1: BUMI ARMADA BERHAD LAST 5 YEARS SHARE PRICE TREND
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**analysis based on 2017 annual report.
1. GENERAL INTRO: This counter core business is on providing
services to offshore oil fields. Owner and operator of marine vessels
for operation oil fields.
2. NOTABLE POINTS:
a. type of services/vessels:
i. floating production and operation
(FPO) - construction and operation of floating oil and gas facilities,
currently the 5th largest FPO operator in the world
ii. Offshore marine services (OMS) -
the offshore service vessels (OSV) provide anchor-handling, towing,
transportation, accomodation and safety support services, as well as
three subsea construction vessels for pipeline installation and heavy
lift operations
b. A multinational company having operations in 17 countries
including Malaysia, Singapore, Vietnam, Indonesia, India, Turkmenistan,
Africa, Brazil, venezuela and Mexico.
c. Currently facing low charter rates of the offshore service
vessels, due to oversupply of vessels and weak demand. Average
utilisation rate around 50%.
3. IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE RANGE (million): ~2402 million in 2017 annual report, this is a high revenue company.
b. SHARE PRICE: share price in last few years on decreasing
trend, decrease from ~RM2.20 in 2014 to current share price of around
~RM0.20.
c. EARNING PER SHARE (EPS): earning per share in last 5 years
were fluctuating, EPS were 14.71, 6.98, -4.00, -32.18, 6.01sen per
share, respectively, making losses in 2 out of 5 years.
d. FUTURE POTENTIAL/PROSPECTS: depend oil prices and capex spending by oil companies on new exploration.
e. CAPITAL EXPENDITURE (CAPEX): spending on purchase of new
fixed assets is RM 1815 million, around 9.6% of total assets.
4. IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND YIELD: in 2017 report, there was no dividend payout declared.
b. CONSISTENCY: last five years (2013-2017) dividends declared
were 3.14, 3.25, 1.63, 0.82, 0 sen per share, respectively.
5. OTHER INDICATORS:
a. CASH FLOW: cash flow is positive, around RM 1845 million, equivalent to RM 0.31 per share
b. SUPPORT BY INSTITUTIONAL INVESTORS: this counter is well
supported by institutional investors, there are 22 institutional
investors at top 30 major shareholders list, including Lembaga Tabung
Haji, EPF, Skim Amanah Saham Bumiputera, Kumpulan Wang Persaraan and few
insurance companies and investment funds.
Disclaimer: The content of the blog posts are for sharing purpose
only. Readers are encouraged to carry out further research and analysis
as well as follow up latest update information before making any
investment decisions.
