Tuesday, May 15, 2012

Bumi Armada: Maintain BUY - Buys two big-sized AHTS from Sanko

Maintain Buy and MYR4.88 SOP-based target price. Bumi's purchase of two second-hand 12,000bhp AHTS at undisclosed prices from Sanko is a clear indication of its intent to leverage on Petrobras' aggressive O&G drive in Brazil. We estimate that these assets would add 2-3% p.a. to Group's earnings and further enhances Bumi's regional footprint in the Latin American market.

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Source: Maybank Research - 15 May 2012

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