Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily, on August 11, 2016.

 

Bumi Armada Bhd (-ve)

Shares in Bumi Armada Bhd (fundamental: 0.4/3, valuation: 1.2/3) triggered our momentum algorithm for the first time ever, following trades of 25.15 million shares yesterday compared to its 200-day average volume of 17.4 million. The counter rose one sen or 1.32% to close at 77 sen.

Last month, Bumi Armada announced the establishment of its joint venture with Shapoorji Pallonji Oil and Gas Pte Ltd, a wholly-owned subsidiary of India conglomerate Shapoorji Pallonji And Company Pte Ltd, to bid for floating production, storage and offloading-related works.

For the first quarter ended March 31, 2016, the group reported a 67% drop in net profit to RM23.43 million from RM72.05 million a year ago, as revenue fell 25% year-on-year to RM430.77 million.

The slower performance for the quarter was attributed to lower overall utilisation of its vessels during the period.

Bumi Armada is trading at 0.67 times its net book value. The company did not pay out dividends for the financial year ended Dec 31, 2015.

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