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 shifting from just FPSO (Floating Production Storage Offloading) leasing to upstream exploration and production (E&P), with new greenfield projects in Indonesia (Akia and Kojo), aiming for long-term growth and vertical integration.
- The company’s near-term earnings outlook is weak due to lower forex assumptions and the expiry of a key FPSO contract, but a successful bid for the Tangkulo FPSO project could significantly improve prospects and act as a catalyst for re-rating.
- Bumi Armada’s financial health has improved, with net debt consistently declining, supporting steady dividend payouts and creating capacity for future ventures.
- Any meaningful revenue from Akia and Kojo is only expected after 2030, so their current value is long-term optionality rather than immediate earnings drivers.
- The report maintains a HOLD rating with a price target of MYR0.37, noting the lack of new job wins and declining EPS as key concerns.
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: www.maybank.com/investment-banking
