However, OSV contributions could improve in 2021 on higher vessel demand on drilling and related projects as Bumi Armada pushes for better spot charter rates.
KUALA LUMPUR: RHB Research reiterated its “buy” recommendation on Bumi Armada Bhd
on improved earnings and cash flow visibility, underpinned by stable FPSO contributions masking weaker offshore marine service weakness.
It said the group’s risk-reward profile looks attractive as the current 5.2x FY21 price-earnings and 0.5x FY20 price-book value reflects an elevated 2.6 net gearing as at 3Q20.Bumi Armada could see higher FPSO earnings in 4Q20 on higher contributions from Armada Kraken following the completion of the scheduled maintenance procedure in September.
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