KUALA LUMPUR (April 17): Bumi Armada Bhd shares rose on Tuesday after the company said it would offer oil and gas support services to Russia-based OAO Lukoil in deal worth an estimated U$200 million (RM614 million).
At 9.25am, Bumi Armada was up seven sen to RM452 with 311,300 shares traded.
CIMB Research has maintained it Outperform rating on Bumi Armada Bhd at RM4.45 with a target price of RM4.80 and said things were going swimmingly for Bumi in Russia where it has clinched a US$200m pipe installation contract from Lukoil.
In a note April 17, the research house said the contract would maximise the utilisation of its Armada Installer derrick pipelay barge, which is servicing a Petronas contract, also in the Caspian Sea.
“We continue to value the stock at 18.2x CY13 P/E, 40% premium over our target market P/E.
“Bumi’s RM7.6 billion order book and four anticipated FPSO contract wins support our forecast of record net profits in FY12-14 and 31.7% 3-year EPS CAGR. Maintain Outperform.
At 9.25am, Bumi Armada was up seven sen to RM452 with 311,300 shares traded.
CIMB Research has maintained it Outperform rating on Bumi Armada Bhd at RM4.45 with a target price of RM4.80 and said things were going swimmingly for Bumi in Russia where it has clinched a US$200m pipe installation contract from Lukoil.
In a note April 17, the research house said the contract would maximise the utilisation of its Armada Installer derrick pipelay barge, which is servicing a Petronas contract, also in the Caspian Sea.
“We continue to value the stock at 18.2x CY13 P/E, 40% premium over our target market P/E.
“Bumi’s RM7.6 billion order book and four anticipated FPSO contract wins support our forecast of record net profits in FY12-14 and 31.7% 3-year EPS CAGR. Maintain Outperform.
