The contracts were associated with the floating production, storage and offloading (FPSO) vessel Armada Perdana, and the suspension was first announced last June after delays to the bare-boat charter payments as well as irregular payments on the operations and maintenance contract.
KUALA LUMPUR: CIMB Equities Research has reduced its target price for Bumi Armada
to 30 sen from 70 sen on the possibility that the company may need more equity if it hopes to grow its portfolio of FPSO assets, or if banks fail to agree on an extension for its debt repayments.
“We slash our target price to 30 sen, based on a 70% chance of a rights issue at 13 sen, and 30% chance of a business-as-usual sum-of-parts valuation of 70 sen,” it said yesterday.
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