Oil and gas companies not looking fine with Q1 results

July 7, 2018

Apologies for focussing on market news, its a slow news cycle.

Dateline 2018-05-31, NST:

 The oil and gas companies under Kenanga Research’s coverage are likely to see deteriorating performance with lower number of outperformers.

Kenanga Research said only two out of seven companies that released their latest interim results had outperformed. They were Dialog Group Bhd and Sapura Energy Bhd.

Another company in the firm’s universe is Bumi Armada Bhd, which is due to release its first quarter results today.

“The disappointment ratio was also higher at 31 per cent (assuming Bumi Armada’s results came within expectations) versus 13 per cent in the fourth quarter of 2017 even with the anticipation of first quarter being a seasonally weak quarter,” Kenanga Research said today.

It noted that upstream services players such as Alam Maritim Resources Bhd, Coastal Contracts Bhd and Dayang Enterprise Holdings Bhd had missed expectations due to stubborn fixed costs amidst unsatisfactory vessel utilisation.

Gas Malaysia Bhd and Petronas Dagangan Bhd also had a soft start dragged by higher product costs and sliding sales volume.

Malaysia’s Bumi Armada 2015 Revenue Down 9% to $516M, Posts $56M Net Loss

April 15, 2016

I guess with net loss being about 10% of revenue, last years obscene profits make up the shortfall?

Dateline 2016-02-29, Rigzone:

Malaysia’s offshore energy facilities and services provider Bumi Armada Berhad posted a net loss of $55.5 million (MYR 234.6 million) for financial year 2015 (FY 2015) ending Dec. 31, 2015, compared to a net profit of $51.7 million (MYR 218.7 million) in the previous year, the company said when releasing its financial results Friday.

Revenue during this period reached $515.5 million (MYR 2.179 billion), down 9.1 percent from $694.6 million (MYR 2.937 billion) in 2014, with the decline attributed to lower contributions by the company’s offshore support vessel (OSV) and transport and installation (T&I) business, which recorded a decline of 17.8 percent and 57.7 percent, respectively.

Overweight on O&G sector: Maybank

April 25, 2014

Here’s me stirring up the market.

Dateline 2014-04-19, Business Times:

Maybank Research maintains OVERWEIGHT rating on oil & gas (O&G) sector with top buys including Bumi Armada, Dialog, SapuraKencana Petroleum (SAKP), Perisai and Perdana.

It noted that interest is wide ranging but most funds tend to be bottom-up driven and stock-selective, seeing strong thematics such as rig building, drilling, OSV upcycles, Petronas capex driving the sector this year.

‘We met up with UK, Hong Kong and US funds during our marketing roadshows in February and March. The interest was across the board ranging from big-caps to small-caps depending on the fund mandate. Funds that have been less Malaysia centric continue to find it challenging to invest in the Malaysian Oil & Gas (O&G) stocks due to their premium valuations relative to the region.

Bids invited for Angsi CEOR prize

May 6, 2012

Hey, wasn’t this bidded out last year? I’ve seen the ideas for it. Don’t own a vessel, though.

Dateline 2012-04-20:

Malaysia’s Petronas Carigali has started a pre-qualification exercise for a multi-year contract on a vessel-based chemical enhanced oil recovery (CEOR) project at the producing Angsi oil and gas complex off Peninsular Malaysia.

An invitation was issued to vessel operators, which are expected to take the lead in pulling together bid packages for the supply of a floating CEOR unit.

Petronas’ floating production division, MISC, and Malaysian duo Bumi Armada and M3nergy are among those invited to respond to the pre-qualification call.

Malaysia’s ambitious plan to transform its economy

May 1, 2012

Dateline 2012-04-28, and I’m being paid too low…

The government of Malaysian Prime Minister Najib Razak launched the Economic Transformation Programme (ETP) in September 2010 with the ambitious goal of doubling income per person to $15,000 to reach developed-nation status by 2020.

The ETP aims to consolidate Malaysia’s oil and gas (O&G) offshore fabricators to become more competitive regionally. OSK said this could benefit Kencana Petroleum Bhd (>> Kencana Petroleum Berhad) and Malaysia Marine of Heavy Engineering Bhd (>> Malaysia Marine & Heavy Engnrg Sdn Bhd), the remaining two listed larger fabricators. Offshore services firms such as Bumi Armada (>> Bumi Armada Bhd) are seen gaining from investments in the energy sector.

Malaysia’s Bumi Armada, MISC vying for Hess job

April 6, 2012

Dateline 2012-03-19:

Malaysian shipping firms Bumi Armada Bhd and MISC Bhd are front runners for a contract to supply a floating, production, storage and offloading vessel to U.S-based oil and gas firm Hess Corp , the Edge Malaysia reported on Saturday.

Bumi Armada has partnered with Singaporean offshore services firm Ezra Holdings Ltd and MISC has joined hands with Malaysian offshore oil and gas firm Ramunia Holdings Bhd to bid for the job, the business weekly reported, quoting unidentified industry sources.

“It should be announced soon, the latest by the end of this month, if Hess wants the job to start by year-end,” the paper quoted an oil and gas official as saying.

Bernama – Petrofac Achieves First Oil At Sepat Offshore Early Production System

January 26, 2012

Dateline 2012-01-17:

Petrofac, the international oil and gas services provider, and its partners, Kencana HL and Bumi Armada, confirmed today first oil has been achieved at the SEPAT offshore early production system in the east coast of Peninsular Malaysia for Petronas Carigali Sdn Bhd.

The project, worth about US$280 million, involves engineering, procurement, construction, installation and commissioning for the full scope of the early production system in a 65-metre water depth.

The project comprises a mobile offshore production unit, a floating storage and offloading facility for the early production of about 20,000 barrels of oil per day, together with all interconnecting subsea pipelines, Petrofac said in a statement to Bernama.