Bumi Armada bags RM1.1b Malta FSU job

-A +A

KUALA LUMPUR (Apr 14): Offshore oilfield services provider Bumi Armada Bhd has secured a US$300 million (RM1.1 billion) contract from ElectroGas Malta Ltd to supply a liquefied natural gas (LNG) floating storage unit (FSU) for a project relating to the construction and operation of an LNG receiving terminal located at Delimara, Malta.

In a filing with Bursa Malaysia today, Bumi Armada (fundamental: 1.05; valuation: 1.4) said its wholly-owned subsidiaries, Armada Floating Gas Storage Malta Ltd (AFG Storage) and Armada Floating Gas Services Malta Ltd, have yesterday entered into agreements with ElectroGas Malta for the proposed project.

“These contracts are a significant milestone for Bumi Armada’s new venture in the promising floating LNG business.

“The project is of national importance to Malta and we are proud of being entrusted to deliver a critical part of this project,” said Bumi Armada acting chief executive officer Chan Chee Beng in a separate statement.

The contracts are for 18 years and two months, with the FSU to commence operations in 2016.

“The contracts are expected to contribute positively to the earnings of the Bumi Armada group for the financial year ending Dec 31, 2015, as well as the financial periods thereafter for the duration of the contracts,” it said.

Bumi Armada said AFG Storage has already identified an LNG carrier, which has been approved by ElectroGas Malta, to be used as the conversion vessel for this project.

“The acquisition of the LNG carrier is currently being finalised,” said the group.

Bumi Armada shares closed unchanged at RM1.06 today, with a market capitalisation of RM6.22 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)