Bumi Armada Berhad PATMI grew 27.6% in 3Q13

4Q13 earnings looking robust as well.

Bumi Armada Berhad (BAB) reported its 3Q13 results, with revenue growing 18.3% YoY to MYR546.3m while PATMI of MYR121.2m represented an increase of 27.6%, reports OCBC Investment Research, with the results meeting the research firm's expectations.

For 9M13, revenue and PATMI jumped 28.3% and 23.9% to MYR1,516.3m and MYR342.9m. Looking ahead at 4Q13, OCBC believes earnings could rise due to major contract wins.

"We expect the finalisation of BAB’s FPSO contract for the Kraken field operation to happen before end-Nov 2013, and this should contribute positively to BAB’s 4Q13 results," said OCBC.

"BAB’s management also highlighted during its analyst conference call that it has emerged as the winner of the Madura FPSO bid in Indonesia, but still needs to obtain approval from the Indonesia regulators SKK Migas," it added.

"There are also 12 other potential FPSO contracts which BAB is seeking to secure, while prospects in the oil and gas sector remain robust," it said further.

OCBC also noted that BAB’s firm contract period orderbook stood at MYR8.0b, as at 30 Sep 2013, with extension options amounting to another potential MYR4.7b.