Broker Name: Maybank Investment Bank Berhad
Date of Report: March 13, 2026

Excerpt from Maybank Investment Bank Berhad report.

• Report Summary:
• Bumi Armada (BAB MK) is maintaining a HOLD rating, with a slightly reduced target price of MYR0.37, as the company’s re-rating depends on winning the FPSO Tangkulo contract or securing an extension for the TGT1 FPSO. The absence of new job wins and the expiry of key contracts point to a weaker earnings outlook in the near term, while the new upstream E&P ventures in Indonesia (Akia and Kojo blocks) are long-term options with potential value only after 2030.
• Bumi Armada is diversifying into upstream oil and gas through exploration in Indonesia (Akia and Kojo blocks), aiming for vertical integration and future FPSO deployment, but these projects are at early stages and will not contribute soon.
• The company’s core business remains FPSO and floating gas solutions, with earnings supported by long-term charters, but a decline in revenue and profit is expected due to lower USD/MYR assumptions and contract expiries.
• Bumi Armada has significantly improved its balance sheet with consistent debt reduction, strengthening its financial position and allowing for stable dividends.
• Key upside for the stock includes a potential new FPSO job win (especially Tangkulo), further contract extensions, or exploration success in Indonesia, while downside risks are driven by oil price volatility, operational issues, or lack of new contracts.

Above is an excerpt from a report by Maybank Investment Bank Berhad. Clients of Maybank Investment Bank Berhad can be the first to access the full report from the Maybank Investment Bank Berhad website: https://www.maybank.com/investment-banking