This article first appeared in The Edge Financial Daily on November 2, 2017

Bumi Armada Bhd (-ve)

SHARES in Bumi Armada Bhd (fundamental: 0.2/3, valuation: 0.9/3), which triggered our momentum algorithm yesterday for the first time this year, closed 2.5 sen or 3.42% up at 75.5 sen yesterday, after some 28.19 million shares were exchanged, compared with the average 14.35 million shares seen in the past 200 days. In an Oct 11 note, AmInvestment Bank wrote after a meeting with company’s management that the company’s firm order book stood at RM23.7 billion, of which RM22 billion was related to floating production and operation (FPO), and RM1.7 billion was for its offshore marine services (OMS) segment. Its optional extension order book amounted to RM13.3 billion, out of which RM12 billion worth was for its FPO segment and RM1.3 billion for OMS segment.

In view of the group’s four ongoing projects last year, AmInvestment wrote the group stressed that it would now only opt for one large project at a time. Bumi Armada also gave assurance it would not need to resort to a rights issue for project financing, as the group still has an untapped US$1.5 billion (RM6.3 billion) multi-currency euro medium-term note programme proposed back in 2013, it added.