bumi armada

Kim Eng Hong Kong is a subsi diary o f Mal aya n Bank ing Berhad

6 March 2012 of 60

Malaysia

17 October 2011

PP16832/01/2012 (029059)

Initiating Coverage 6 March 2012

PP16832/01/2013 (031128)

Page 1 of 2

Bumi Armada The Armada strikes back

Initiating coverage with a Buy and RM4.88 target price. Bumi

Armada (BA) offers a niche exposure to the Floating Production,

Storage and Offloading (FPSO) market. As one of the fastest growing

FPSO operators in the world, it has set its sights on being the Top 4

player in terms of FPSO fleet size by 2013. It is also poised to gain

traction in Malaysia‟s O&G sector, as it leverages on PETRONAS‟

capex programme. BA, which is steadfastly building up franchise

values, is a steady growth stock with a 3-year net profit CAGR of 25%.

Bigger, bolder, better. BA is today a giant compared to its previous

self. The restructured entity is now a powerhouse with a global

presence, covering 4 core operations – FPSO, Offshore Supply Vessel

(OSV), Transportation & Installation (T&I) and Offshore Field Services

(OFS). It commands an armada of 53 vessels: 5 FPSOs, 46 OSVs, 1

pipelay barge and SURF vessel operating across the the world.

In an entrenched position to ride global E&P programmes. We see

innumerable opportunities for BA to capitalize on the: (i) 125 potential

FPSO projects worldwide, (ii) requirement for new, highly technical

OSVs to support global deepwater programmes, (iii) services for the

subsea umbilicals, risers and flowlines (SURF), inspection, repair and

maintenance (IRM) markets, and (iv) increasing number of offshore

development projects in Malaysia (marginal field and Enhanced Oil

Recovery (EOR) development) and the Caspian region.

Set to embark on an aggressive asset expansion plan. We see BA

prospecting for new assets for growth. BA will likely double its FPSO

assets, triple its SURF vessels and add 4 new OSV vessels to its fleet

by 2015. This is possible as it has the balance sheet to support the

heavy capex (estimated RM6.4b) for its expansion programme while

keeping its net gearing below the 1.5x threshold.

Strong earnings visibility 3 years out. We project a 3-year net profit

CAGR of 25%. All divisions will contribute to growth, fueled by new

vessels (FPSO, OSV, pipelay barges) progressively coming onstream

and higher utilization (ex-dayrate revision) for the existing vessels.

Bumi Armada – Summary Earnings Table Source: Maybank IB

FYE Dec(RM m) FY10A FY11A FY12F FY13F FY14F Revenue 1,241.4 1,543.9 1,800.7 2,220.6 2,504.3

EBITDA 715.6 845.1 1,048.7 1,272.6 1,442.0

Recurring Net Profit 350.8 387.3 532.2 627.5 706.9

Recurring Basic EPS (Sen) 12.0 13.2 18.2 21.4 24.1

EPS growth (%) 26.4 10.4 37.4 17.9 12.6

DPS (Sen) 0.0 2.5 0.0 0.0 0.0

PER 34.5 31.2 22.7 19.3 17.1

EV/EBITDA (x) 21.3 16.4 13.9 11.8 10.4

Div Yield (%) 0.0 0.6 0.0 0.0 0.0

P/BV(x) 13.8 3.4 3.0 2.6 2.3

Net Gearing (%) 359.0 49.9 61.6 63.0 54.4

ROE (%) 40.1 10.9 13.3 13.5 13.2

ROA (%) 10.8 9.3 9.2 9.2 9.1

Consensus Net Profit (RM m) - - 585.0 706.5 794.4

Buy (new)

Share price: RM4.13 Target price: RM4.88

Wong Chew Hann, CA [email protected] (603) 2297 8688

Chong Ooi Ming [email protected] (603) 2297 8676

Stock Information

Description: Integrated Oilfield services provider with 4

core operations: FPSOs, OSVs, T&I vessels and offshore field services.

Ticker: BAB MK Shares Issued (m): 2,928.5 Market Cap (RM m): 12,094.5

3-mth Avg Daily Volume (m): 3.73 KLCI: 1,589.22 Free float (%): 29.6

Major Shareholders: % Objektif Bersatu Sdn Bhd 42.4

Ombak Damai Sdn Bhd 11.6 Wijaya Sinar Sdn Bhd 7.3

Karisma Mesra Sdn Bhd 5.4

Key Indicators

Net cash (RM m): (1,760.6) NTA/shr (RM): 1.20

Net gearing (x): 0.5

Historical Chart

3.0

3.3

3.6

3.9

4.2

4.5

Jul-11 Sep-11 Nov-11 Jan-12

BAB MK Equity

Performance:

52-week High/Low RM4.33/RM3.03

1-mth 3-mth 6-mth 1-yr YTD

Absolute (%) 4.0 11.3 na na 0.7

Relative (%) 0.8 3.8 na na (3.1)

6 March 2012 of 60

Bumi Armada 17 October 2011

Table of contents Page

Key investment merits 3

Introduction: Bigger, bolder, better 4

Snapshot of Bumi Armada‟s operations

• Floating Production, Storage & Offloading (FPSO) 7

• Offshore Supply Vessel (OSV) 12

• Transport & Installation (T&I) 16

• Offshore Field Services (OFS) 16

• Revenue and EBIT breakdown 17

Floating, Production, Storage & Offloading (FPSO)

• Fundamentals 20

• Opportunities 26

Offshore Supply Vessel (OSV)

• Fundamentals 29


Transport & Installation (T&I)

• Fundamentals 39


Offshore Field Services (OFS)

• Fundamentals 42


FInancials

• Financial projections 48

Valuation 51

Peers‟ valuations – FPSO operators 52

Peers‟ valuations – OSV operators 52

Risks 53

Financial statements 55

Appendix : Captains & Commanders of the Armada 57

Kim Eng Hong Kong is a subsi diary o f Mal aya n Bank ing Berhad

6 March 2012 of 60 Page 1 of 2

17 October 2011

PP16832/01/2012 (029059)

Bumi Armada

Key investment merits

Introduction. The Bumi Armada of today is a transformed entity. The

Group has been restructured and now has four businesses: (i) FPSO,

(ii) OSV, (iii) T&I and (iv) OFS, with a global presence in each segment.

The company is driven by a dedicated, experienced and professional

management team, comprising talent from multiple nationalities.

Solid business model. We like the FPSO space. It provides steady

visibility (contracts and earnings) with reasonable IRRs. Competition is

limited given the high investment and technical hurdle requirements.

Bumi Armada‟s OSV operation, relatively new, modern and modulated

to the high-end vessel segment is a positive, for it provides respectable

utilisation and day rates. Bumi Armada‟s stint in the T&I and OFS

divisions has been brief so far but has delivered the desired results.

Well-positioned to push for new contracts, locally and globally.

Prospects are bright for Bumi Armada to ride on the global O&G capex

upcycle, as it capitalises on the growing demand for new FPSO and

OSV charters, as well as growing requirements for brownfield

developments. In the domestic ( i.e. Malaysia) space, the prospect of

leveraging on PETRONAS‟ deepwater, marginal field and enhanced oil

recovery (EOR) field projects is high. It has both the operational

foresight and financial structure to leverage and support its expansion

programmes.

Powering up - where growth and aspirations meet. We opine that

Bumi Armada has the balance sheet to fund 3 new SURF vessels, 5

FPSOs and 8 OSVs over the next three years without straining its

cashflow and gearing levels. This is a sensible aspiration, which would

propel Bumi Armada to become the fourth largest FPSO operator

globally with a competitive edge to boot.

A towering growth stock with rewarding returns. With a 3-year net

profit CAGR forecast of 25%, its relentless pursuit of excellence will

secure Bumi Armada the status of fastest-growing operator among its

global peers. However, given prospects for high growth, we believe that

it is unlikely that Bumi Armada will reward shareholders with meaningful

dividends in the foreseeable future.

High conviction: valuations with compelling growth prospects. We

value Bumi Armada at RM4.88, using the sum-of-part (SOP) valuation

methodology. At our target, Bumi Armada would have a market

capitalisation of RM14.3b, a valuation that would see it become the

largest FPSO player worldwide by market value (ahead of SBM‟s

RM10.3b), while outpacing its contemporaries in growth and profit

margins.

6 March 2012 of 60


Bigger, bolder, better

Bumi Armada – remembering the old days. The Bumi Armada of

yesterday was just a shadow of its present incarnation. The previous

entity, listed on 25 June 1997 and delisted six years later on 18 April

2003 (with a market capitalization of RM441m), was primarily engaged

in just two main business activities:

(i) offshore support vessel (OSV) operations, and

(ii) offshore construction, installation & maintenance services.

Operations then were predominantly domestic-centric, supported by 25

vessels, 2 tanker support vessels and a Floating Production, Storage

and Offloading (FPSO) system.

The present day – rejuvenated and ready to ride the waves. The

group has since been restructured and the Bumi Armada of today is a

much larger and more diversified entity with a global reach. True to its

name, it really has burgeoned into an armada, with a fleet of 5 FPSOs

(including two undergoing conversion), 46 OSVs, one pipe-laying barge

and another SURF vessel, making it the jointly fifth-largest FPSO

operator in the world and the third-largest OSV operator in Southeast

Asia. Meanwhile, its business has grown to encompass four segments:

(i) FPSO,

(ii) OSV,

(iii) Transport & Installation (T&I) and

(iv) Offshore Field Services (OFS)

with two support units: Fleet Management Services (FMS), and

Engineering, Procurement and Construction (EPC).

Usaha Tegas Group (UT) is the largest shareholder. UT, a privately-

owned holding company, presently holds a 42.4% stake, held through

Objektif Bersatu Sdn Bhd (OBSB).

The other four substantial shareholders that hold a cumulative 27.5%

stake are:

(i) Ombak Damai Sdn Bhd (ODSB) - 11.6%

(ii) Wijaya Sinar Sdn Bhd (WSSB) - 7.3%

(iii) Karisma Mesra Sdn Bhd (KMSB) - 5.4%

(iv) Wijaya Baiduri Sdn Bhd; (WBSB) - 3.2%

A well-managed set-up, driven by experienced management. Bumi

Armada is led by an experienced, dedicated and culturally diverse

senior management team that presides over an agile organisation. The

group has proved it can attract worldwide talent (with over 20

nationalities) to operate across multiple countries while its flat

organisational structure gives it the ability to react efficiently and quick ly

to business threats and opportunities, both domestically and

internationally. Hassan Asad Basma, the CEO of Bumi Armada, has an

extensive 30 years of experience in the O&G industry with 18 years‟

working knowledge in Asia.

6 March 2012 of 60


Business model – Pre and post restructuring

Support Units

Business Units

Legend

Floating Production

Storage and

Offloading (FPSO)

Offshore Support

Vessel (OSV)

Transport and

Installation Services (T&I)

Oilfield Services

(OFS)

Engineering,

Procurement and Construction

Fleet Management

Services

BAN Haven

• Offshore installation,

servicing and

maintenance

Restructuring

•Tripled FPSO f leet size

•Newer, younger and bigger OSVs

•Disposal of Haven

Owns and leases 5

FPSOs

• 2 in Nigeria

• 1 in Vietnam

• 2 to start operations in Balnaves field Australia

& D1 field India

Owns a fleet of 46

OSVs

• 26 AHT/ AHTS

• 8 accommodation

barges/ boats• 12 others

Pipelay, heavy lift,

subsea installation,

floater, mooring

installation and marine

spread support services• 1 DLB in the Caspian

• Acquired a SURF

vessel- Armada Hawk

Converted and sold an

FSO to Petrofac for the

Sepat field

• Services cover all

aspects of the oil field life cycle, from

exploration to

development,

production and

abandonment

Solely in house EPC

and project

management

• Executed the “Steel

on Water” new build fleet expansion

programme

• Oversaw conversion of

FPSOs and

construction and re integration of Armada

Installer (DLB)

In-house management

and operations of fleet:

• has access to over

1,300 crew members

• Offices and shore bases in Malaysia,

Singapore, India,

Brazil, the Congo,

Mexico, Nigeria and

Turkmenistan

OSVs and related logistics;

•25 OSVs,

•2 tankers

•and 1 FPSO

Sources: Company, Maybank-IB

6 March 2012 of 60


SECTION 1: EXISTING OPERATIONS

6 March 2012 of 60


A snapshot of Bumi Armada’s operations

(i) The provision of FPSO services

A growing force in the FPSO world. Bumi Armada, ranked jointly 5th

in the world by fleet size (lease units), is the first to own and operate a

FPSO in Malaysia and is touted to be the only operator worldwide to-

date to have redeployed the same FPSO (Armada Perkasa) three times

across two continents (i.e. Asia, Africa).

Building its niche in the segment for small-sized, conversion

FPSOs. Bumi Armada owns & operates three FPSOs (Armada

Perkasa, Armada Perdana and Armada TGT1) on firm, long-term

charters. It is currently outfitting another 2 units, the Armada D1 &

Armada Claire (Balnaves), to be deployed in India (4Q 2012) and

Australia (1Q 2014) respectively. Type-wise, all of its FPSOs consist of

converted units and in terms of processing capacities, fit into the

category of small-sized FPSOs (< 80,000 bpd of oil, 0.8m bbls storage).

Snapshot of global independent FPSO operators by fleet size

119

12

7

43

1

4

12 2 2

1

6

2

2

1

24

21 1

1

4

11

20

3

6

9

12

15

18

SBM Modec BW Teekay Bluewater Bumi Armada OSX Maersk Petrofac Fred Olsen Saipem Sevan Tanker Pacific Aker FP

(Units) Existing Fleet On Orderbook Idle


Existing FPSO contracts

2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026

Armada Claire

Armada D1

Armada TGT 1

Armada Perdana

Armada Perkasa

Nigeria: Afren 2008 - 2013 (2018)

Nigeria: NAE 2009 - 2019

Vietnam: Hoang Long JOC 2011 - 2018 (2026)

India: ONGC 2012 - 2019 (2025)

Australia: Apache 2014 - 2017 (2021)


6 March 2012 of 60


Arguably one of the fastest growing FPSO players in the field.

Bumi Armada‟s FPSO fleet has expanded rapidly in recent years, with

acquisitions averaging one new FPSO a year between 2007 and 2011.

It refurbished the Armada Perkasa for a 3rd contract in 2007 and

secured contracts for Armada Perdana and Armada TGT1 in 2009.

In 2011 Bumi Armada won two more contracts, chartering the Armada

D1 to ONGC in India while the Armada Claire was contracted to

Apache for its Balnaves field in Australia.

Bumi Armada’s present FPSO fleet

FPSO Narrative

Armada Perkasa &

Armada Perdana

Currently on operation in Nigeria. Armada Perdana is

chartered to ENI‟s subsidiary; NAE for the Oyo field while

Armada Perkasa is leased to Afren for the Okoro Setu field

with firm 10 year contracts till 2019.

Petroleum consultants Netherland, Sewell & Assoc, Inc.

(NSAI), have recently certified gross 2P reserves in the Okoro

Setu field at 19.5m barrels (bbls) of oil (as at Dec 2010) and

626m-2,200m bbls for Oyo (Apr 2011). To-date, only 15.2m

and 3.6m bbl have been produced respectively.

Armada TGT1 Chartered to PetroVietnam for the Te Giac Trang (TGT) field in

Vietnam. Production began on 22 Aug 2011; the contract

period is till 2018 with the potential for extension up to 2026. A

2nd well is expected to be added in 2012.

Armada D1 On 10 Aug 2011, Bumi Armada signed a charter with ONGC to

lease an FPSO for the D1 field in India. The USD620m

contract is fixed for 7 years (2019) with annual extension

options for another 6 years (2025). Bumi Armada has a

49.99% stake in the FPSO with the rest held by Forbes &

Company Ltd

Armada Claire Bumi Armada has recently signed a contract with Apache

Energy Ltd in Sept 2011 to lease Armada Claire to the

Balnaves development in Australia. With 14m-19m bbls of

reserves, expectations are for 1st oil before 2014. Contract

value of USD445m (RM1.46b).

Rainbow River Rainbow River is an Aframax tanker on which Bumi Armada

has the option to convert into an FPSO.

Source: Company, IMA, Maybank-IB

Proven and prospered, even during the credit crisis. Operationally,

Bumi Armada has proven its technical excellence, track record and

execution capabilities in the FPSO business. It has been able to deliver

vessels on time, fully funded and within budget even during the global

financial crisis in 2008. The Armada Perkasa, Armada Perdana and

Armada TGT1 vessels have met all contractual uptime performance

requirements to-date.

Arguably among the most efficient FPSO operators in the world.

From a financial perspective, Bumi Armada is among the better-run

operators in the FPSO circle. Its EBIT margins of 27-32% are the

highest vis-à-vis its peers 9-26%. Comparatively, it has the advantage

of a lower cost base structure vis-à-vis its European counterparts. This

is due to its effective cost management (i.e. firm cost controls, facility to

source for funds and tankers at decent rates, close proximity to yards)

and ability to execute projects with minimal cost overruns.

6 March 2012 of 60


Vessel 1: Snapshot of FPSO Armada Perkasa

Vessel details

Terms Details

Area of operation: On contract till 2018, in Okoro Setu field Nigeria

Contract amount (USD m): 150

Duration: 5-plus-5 year fixed-time charter.

History: Deployed at Bunga Kekwa, (97-04) & Baram, (05-06)

Performance Statistics Ship Dimensions

Production capacity (bpd ‘000): 30.0 Length (m): 221.2

Storage capacity (bbl ‘000): 298.4 Breath (m): 32.2

Ave. daily production (bpd): 16.1 Draft (m): 17.5

Dwt (‘000 tonnes) 58.6

Hull age, type and conversion yard: 1975, Single hull, Keppel Singapore

Sources: Company, Afren, Maybank-IB

Vessel 2: Snapshot of FPSO Armada Perdana

Vessel details

Terms Details

Area of operation: On contract till 2019, in Oyo field Nigeria


Duration: 10 year fixed-time charter.

History: Petromin‟s Histria Crown, sold for USD 22m


Production capacity (bpd ‘000): 40 Length (m): 308.7

Storage capacity (bbl ‘000): 1,100 Breath (m): 46.0

Ave. daily production (bpd): na Draft (m): 22.6

Dwt (‘000 tonnes) 156.5

Hull age, type and conversion yard: 1984, Single hull with side impact protection,

Keppel Singapore


Vessel 3: Snapshot of FPSO Armada TGT1

Vessel details

Terms Details

Area of operation: On contract till 2026, in TGT field Vietnam



History: Great Eastern‟s Jag Layak, sold for USD 44m



Storage capacity (bbl ‘000): 620 Breath (m): 47.8


Dwt (‘000 tonnes) 147.0

Hull age, type and conversion yard: 1996, Double hull, Keppel Singapore

Sources: Company, Various, Maybank-IB

6 March 2012 of 60


Vessel 4: Snapshot of FPSO Armada D1 (undergoing conversion)

Vessel details

Terms Details

Area of operation: On contract till 2025, in D1 field India



History: Ondimar‟s Monte Umbe, selling price USD 21m





Dwt (‘000 tonnes) 107.2



Vessel 5: Snapshot of FPSO Armada Claire (Griffin Venture- undergoing conversion)

Vessel details

Terms Details

Area of operation: On contract till 2021, in Balnaves field Australia


Duration: Four-plus-four year fixed-time charter.

History: BHP‟s Griffin Venture, deployed at Griffin field (1994-2009)





Dwt (‘000 tonnes) 102.1



Vessel 6: Aframax Rainbow River: (Purchase option secured, conversion candidate for next FPSO project)

Vessel details

Terms Details

Area of operation: na

Contract amount (USD m): na

Duration: na

History: GNM‟s Rainbow River, purchase price RM68m


Production capacity (bpd ‘000): na Length (m): 246.0

Storage capacity (bbl ‘000): na Breath (m): 42.0


Dwt (‘000 tonnes) 107.2

Hull age, type and conversion yard: 1999, Double hull, awaiting yard announcement


6 March 2012 of 60


Bumi Armada: Deployment of its FPSO

Gulf Of MexicoMideast/

SW Asia

Australia/ NZ

Brazil

Far East

CanadaNorthern

Europe

Africa

South East Asia

Armada Perkasa, Okoro Setu, Nigeria

(2008-2013/18)

Armada Perdana, Oyo Nigeria(2009-2019)

Armada TGT1, Te Giac Trang (TGT),

Vietnam

(2011-2018/26)

Armada Claire, Balnaves, Australia

(2014-2017/21)

Armada D1, D1 field India

(2012-2019/21)


6 March 2012 of 60


(ii) The provision of OSV services

A large and modern fleet. Bumi Armada has a large and modern OSV

fleet with cross-border operational capabilities at both green and

brownfields. It owns 25 Anchor Handling Towing Support (AHTS)

vessels, 8 accommodation workboats workbarges, 3 mooring launch

vessels, 3 Straight Supply Vessels (SSVs), 3 platform supply vessels

(PSV), 2 utility vessels, a standby vessel and an oil recovery vessel.

The biggest operator in Malaysia, 3rd

in SEA. With a fleet of 46

OSVs, Bumi Armada is the largest fleet operator in Malaysia and 3rd in

Southeast Asia, by size and competitiveness. According to Infield

Services Limited, Bumi Armada is recognised as a 1st tier OSV player

(i.e. a sizeable fleet capable of servicing large operators and projects).

Its other accolades include being the first domestic operator to own and

operate dynamic positioning (DP) AHTS for deepwater projects (Kikeh).

70% waiver on Malaysia tax due to Section 54A. Bumi Armada is

one of a select few OSV operators that enjoys Section 54A status under

the Malaysia‟s Income Tax Act. This grants the group a 70% waiver on

income tax from its Malaysian-flagged vessels.

Has a young fleet; 8 years average. Most of the vessels are deployed

in Malaysia (28 units). In the overseas market, 16 of its vessels are

deployed in Africa (i.e. Nigeria: 10, Congo: 1), South & Central America

(i.e. Venezuela: 1, Mexico: 1, Brazil: 2) and Asia (i.e. Brunei: 1). The

fleet is young, with an average age profile of 8 years. 54% of its vessels

are 6 years old or less. 2 contracted newbuilds are under construction.

Decent utilization rates. Bumi Armada has successfully chartered its

vessels at decent rates and at decent utilization levels over the past

three years. In terms of vessel-type, the accommodation workboats/

barges are the most employable, with high utilization rates of 80-91% in

2008-10. Meanwhile, the AHT and AHTS segment is the most volatile,

with utilization ranging between 66% and 98%. In 4Q 2011, Bumi

Armada‟s OSV fleet enjoyed a commendable 96% utilisation rate.

AHTS: Dayrates and utilization level (2008 – 2010) Year DCR range (USD per bhp) Utilization rate (%) No. of OSVs (unit)

2010

3.85 65.7 23 1.32

2009

2.82 86.9 18 1.22

2008 1.15

3.57 95.1 14


Accomodation workboat/ barge: Dayrates and utilization level (2008 – 2010)

Year DCR range (USD per bed) Utilization rate (%) No. of OSVs (unit)

2010

257.5 80.0 8 63.9

2009

257.5 91.2 8 63.9

2008 58.4

174.6 91.1 6


Other OSVs: Dayrates and utilization level (2008 – 2010)

Year DCR range (USD per bhp) Utilization rate (%) No. of OSVs (unit)*

2010

5,000 73.4 9 1,076

2009

5,628 61.9 19 534

2008 569

6,902 85.2 16

Sources: Company, Maybank-IB; * excludes Armada 5, Armada 6 and Armada Tugas 1 that are under jointly-controlled entity; Armada Century Ltd

6 March 2012 of 60


OSV: Operators in South East Asia (fleet size)

0 10 20 30 40 50 60 70

Swire

PACC

Bumi Armada

Ezra

Alam Maritim

RK

Swissco

Pacific Richfield

Jaya

Scomi

Swiber

CH Offshore

Sealink

Eastern Offshore

BritOil

Petra Perdana

P. Radiance

Pelican

Vietsovpetro

Anjong

Tgoff

Trinity Offshore

Chuan Hup

Mermaid

Strato

ASL

Otto

Nor Offshore

Number of vessels

Bumi Armada

Sources: Company, Infield, Maybank-IB

OSV: Competiveness landscape

Great Offshore

RK

Ezra

PACC

Swire

Swissco

Pacific Radiance

Trinity Offshore

Swiber

Sealink

CH Offshore

ASLOtto Marine

Scomi

Brit Oil

Mermaid

Nor Offshore

Tanjung Offshore

Eastern OffshorePetra Perdana

Pacific Richfield

Greatship

Pelican

AjangChuan Hup

Vietsovpetro

Strato NC

70

60

50

40

30

20

10

0

Siz

e (C

urr

en

t+ N

ew

build

fleet)

ODS market presence score

Jaya

Source: Infield

6 March 2012 of 60


Bumi Armada: Overview of OSV fleet

No. Vessel Type Built Age bhp beds DP Status charter Location Charterer

1 Armada Tuah 6 AHT 1997 15 4,000 - - Short Labuan

2 Armada Tuah 8 AHT 2002 10 4,840 - - Long Kemaman PTSC, Vietnam

3 Armada Tuah 9 AHT 2002 10 5,040 - - Long Kemaman EMEPMI

4 Armada Tuah 10 AHT 2003 9 4,000 - - Long Kemaman PTSC, Vietnam

5 Armada Tugas 4 AHT 2005 7 5,040 - - Long Nigeria Afren

6 Armada Tuah 20 AHTS 2004 8 5,040 - - Short Kemaman

7 Armada Tuah 21 AHTS 2005 7 5,040 - - Long Labuan Shell

8 Armada Tuah 22 AHTS 2005 7 5,040 - - Long Nigeria Afren

9 Armada Tuah 23 AHTS 2006 6 5,040 - - Long Kemaman EMEPMI

10 Armada Tuah 24 AHTS 2006 6 5,040 - - Unemployed Kemaman

11 Ventures Tuah Satu** AHTS 2007 5 6,000 - DP1 Long Kemaman

12 Ventures Tuah Dua** AHTS 2007 5 5,000 - DP1 Long Kemaman

13 Armada Tuah 25 AHTS 2007 5 5,040 - DP1 Long Kemaman Petrofac

14 Armada Tuah 26 AHTS 2007 5 5,040 - DP1 Long Labuan Murphy Oil

15 Armada Tuah 80 AHTS 2008 4 8,000 - DP1 Short Labuan

16 Armada Tuah 82 AHTS 2009 3 8,000 - DP1 Short Labuan Murphy Oil

17 Armada Tuah 81 AHTS 2010 2 8,000 - DP1 Long Nigeria Afren

18 Armada Tuah 83 AHTS 2010 2 8,000 - DP1 Unemployed Tj. Langsat

19 Armada Tuah 84 AHTS 2010 2 8,000 - DP1 Unemployed Tj. Langsat

20 Armada Tuah 85 AHTS 2010 2 8,000 - DP1 Short Kemaman

21 Armada Tuah 100 AHTS 2006 6 9,000 - DP2 Long Labuan Murphy Oil

22 Armada Tuah 101 AHTS 2007 5 9,000 - DP2 Short Nigeria

23 Armada Tuah 102 AHTS 2008 4 12,000 - DP2 Long Brazil Petrobras

24 Armada Tuah 104^ AHTS 2009 3 12,000 - DP2 Short Nigeria

25 Armada Tuah 105 AHTS 2009 3 12,000 - DP2 Short Venezuela Petromin/ PDVSA

26 Armada Goodman Accom. workboat 1991 21 n.a 95 - Short Labuan DESB

27 Armada Topman Accom. workboat 1991 21 n.a 95 - Short Labuan

28 Armada Iman Accom. workboat 1998 14 n.a 140 - Long Labuan Inoilco

29 Armada Salman Accom. workboat 2002 10 n.a 132 - Long Labuan Nautika

30 Armada Firman Accom. workboat 2004 8 n.a 200 - Long Kemaman Talisman

31 Armada Firman 2 Accom. workboat 2008 4 n.a 200 DP2 Short Nigeria Superior Energy, USA

32 Armada Firman 3 Accom. workboat 2008 4 n.a 200 DP2 Long Mexico Trese, Mexico

33 Mahakam Accom. workbarge 2004 8 n.a 300 - Long Congo Diamond

34 Armada Mutiara 2 Mooring launch 2008 4 750 - - Long Labuan Shell

35 Armada Mutiara 3 Mooring launch 2009 3 750 - - Long Miri Shell

36 Armada Mutiara 4 Mooring launch 2009 3 800 - - Long Miri Shell

37 Armada Aman Standby vessel 1996 16 3,600 - - Long Kemaman PETRONAS Maritime

38 Armada 5*** SSV 1984 28 2,600 - - Unemployed Nigeria

39 Armada 6*** SSV 1984 28 2,600 - - Long Nigeria

40 Armada Tugas 1*** Utility vessel 2003 9 2,500 - - Unemployed Nigeria

41 Armada Tugas 3 Utility vessel 2005 7 3,200 - - Short Kemaman

42 Armada Tugas 2 Oil recovery vessel 2003 9 3,000 - - Long Brunei Nautika

43 Armada Hydro*** SSV 1988 24 1,060 - - Unemployed Nigeria

44 PSV 1 PSV 2012 1 n.a - - Long Brazil Petrobras

45 PSV 2# PSV 2012 1 n.a - - nm nm nm

46 MPSV 1# MPSV 2012 1 n.a - - nm nm nm

Note: ** Owned by Bumi Armada’s JV, Offshore Marine Ventures Sdn. Bhd,

*** Owned by Bumi Armada’s JV,Armada Century Ltd.

# Under construction


6 March 2012 of 60


Bumi Armada: Deployment of OSVs

Gulf Of Mexico

Brazil

Africa

South East Asia

Legend

Number of OSVs in the region

Venezuela

1

1

2

10

Mahakam,

Congo

1 29

Sources: Company, Maybank-IB * 1 PSV and 1 MPSV under construction

Bumi Armada: AHTS’ capacity (by bhp) Bumi Armada: Accommodation vessel capacity (by bed)

14 vessels

18 vessels

23 vessels

2008 2009 2010

76,200

120,200

160,200

Average

bhp /

AHTS 5,443 bhp 6,678 bhp 6,965 bhp

6 vessels

8 vessels

8 vessels

2008 2009 2010

962

1,362 1,362

Sources: Company, Maybank-IB Note: Excludes JVs (2 vessels) Sources: Company, Maybank-IB

6 March 2012 of 60


(iii) Transportation & Installation (T&I) services

Bumi Armada ventured into this segment in 2009. This division

primarily provides pipelay, heavy lift, subsea installation, floater and

mooring installation and marine spread support services.

Asset-wise, Bumi Armada owns and operates a derrick lay barge

(DLB), namely Armada Installer, which is currently leased to Petronas

Carigali Sdn Bhd (PCSB) in the Caspian Sea, off Turkmenistan on an

8-year contract since 2010. Armada Installer is one of only two DLB

currently operating in the Caspian region.

Track record with proven capabilities. Armada Installer, built in 2009,

is capable of laying 4”-48” diameter pipes with 800 tonnes of lifting

capability. The vessel, which can operate in water depths of between 8-

300m was commissioned and has been in operation since 2Q 2010. It

has concluded her maiden work, completing the laying of:

(i) 2 lengths of 12” diameter pipe of 7 km each,

(ii) 72 km of 12” diameter pipe and 4” diameter piggy back pipe, and

(iii) 72 km of 26” diameter pipe.

New asset acquisition. Bumi Armada has also acquired the Armada

Hawk, a 2nd

generation dynamic positioning (DP2) subsea installation

vessel, which allows it to offer subsea umbilicals, risers and flowline

(SURF) capabilities and services. Armada Hawk recently completed the

Sepat field installation work and will be deployed to the D1 field in 2012-

13.

Expanding coverage. In addition to SURF installation, the vessel will

also allow Bumi Armada to bid for inspection, repair and maintenance

(IRM) projects. We expect Bumi Armada to acquire a pipelay vessel to

expand its services in Brazil, West Africa and India.

(iv) Offshore Field Services (OFS)

This is Bumi Armada’s most recent venture, and is a key part of its

strategic focus for the Malaysia market. It leverages on PETRONAS‟

domestic programmes to: (i) develop marginal fields through innovative

solutions, and (ii) rejuvenate existing fields through Enhanced Oil

Recovery (EOR) to optimize production and arrest the declining state of

the existing fields.

Recurring opportunities. OFS entails the provision of various

specialized services required in the offshore mature/brownfield, EOR

and the risk-based services contracts (RSC) markets. Bumi Armada

currently offers services, either directly or through partnerships or

alliances in the exploration (survey), development (facilities and

installation), production (FPSO) and abandonment (T&I) phases of the

marginal oil field, and brownfield projects.

First project – Sepat field. Bumi Armada‟s initiation in this segment

came from the conversion and sale of an FSO to Petrofac for the Sepat

field, off Terengganu in 2011. The project management work was

completed on schedule in Oct 2011 in a record 8 months. Bumi Armada

recognized about RM21m in EBIT from this project alone, based on a

10% margin.

6 March 2012 of 60


Snapshot of revenue and EBIT breakdown

FPSO division is the largest contributor to group earnings, having

overtaken the OSV division in 2010. It has generated 39-45% of group

revenue and 32-38% of group EBIT over the past 3 years.

The influence of OSV operations has been on a steady decline.

Contribution to group revenue and EBIT fell from 55% and 52% in 2009

to 31% and 26% respectively in 2011.

The reduction in contribution from the OSV division to group earnings

has been more pronounced with the emergence of the more lucrative

T&I division, which made its maiden contribution in 2010. T&I reported

RM268m in revenue and RM149m in EBIT for the year, accounting for

22% and 36% of Group revenue and EBIT.

For 2011, Bumi Armada has taken on an even more diversified

earnings profile with maiden contribution from the new OFS segment

which undertook the conversion of the FSO Sepat. OFS contributed

RM211m in revenue and RM21m in EBIT accounting for 14% of total

revenue and 5% of EBIT respectively.

Bumi Armada: Revenue breakdown (by division)

FPSO45%

OSV55%

FY 2009 Revenue: RM732.1m

FPSO44%

OSV34%

T&I22%

FY 2010 Revenue: RM1,241.4m

FPSO39%

OSV31%

T&I16%

OFS14%

FY 2011 Revenue: RM1,543.9m


Bumi Armada: EBIT breakdown (by division)

FPSO48%OSV

52%

FY 200 EBIT: RM294.4m

FPSO43%

OSV21%

T&I36%


FPSO43%

OSV26%

T&I26%

OFS5%



6 March 2012 of 60


Steady EBIT margins trend. On a blended basis, Bumi Armada‟s EBIT

margin has been consistent, averaging around 34-40% over the past 3

years. Its 2011 EBIT was negatively impacted by a confluence of one-

off items: (i) the Armada Installer was dry docked in 3Q for upgrading,

(ii) an estimated RM22m in listing expenses, (iii) RM6m in fair value

changes of call options and (iv) higher depreciation (RM78m) due to

additional vessels (i.e. FPSO and OSV).

Operationally, the FPSO division had consistently delivered reasonable

EBIT margins of 28-33% in 2009-11. The EBIT margin for OSV typically

mirrors that of its FPSO operations, albeit with a lower 21-25% range.

The T&I division commands the highest EBIT margin among the three

core operations. Despite Armada Installer being dry docked, the

segment still generated 48% EBIT margins in 2011.

Bumi Armada: EBIT by division Bumi Armada: EBIT margin by division

53.6 92.8179.2 200.289.4

99.6

88.9116.8

148.5117.2

21.0

0

10

20

30

40

50

0

100

200

300

400

500

2008 2009 2010 2011

FPSO (LHS) OSVs (LHS)T&I (LHS) OFS (LHS)Blended EBIT margin (RHS)

( %)

27.1% 28.3% 32.4% 32.9%

27.7% 24.6% 21.2% 24.2%

55.3% 48.4%

10.0%

2008 2009 2010 2011

FPSO OSVs T&I OFS

Sources: Company, Maybank-IB Sources: Company, Maybank-IB

Earnings breakdown by geography. Bumi Armada operates across 4

continents, from the rich offshore oil fields in the Gulf of Mexico, Brazil

and Venezuela, to West Africa (Angola, Nigeria and the Congo), the

land locked Caspian Sea, Vietnam and resource rich Australia.

Asia and Africa anchor earnings. Geographically, Asia (ex-Malaysia)

and Africa were the 2 major contributors to group revenue in 2010 at

43% and 35% respectively. Malaysian operations came in third with a

15% share, followed by Latin America (7%). No geographical

breakdown was provided in 2011.

Bumi Armada: Revenue breakdown – by region

M'sia41%

Asia17%

Africa42%

FY 2008 Revenue:RM519.8m

M'sia30%

Asia17%

Africa47%

FY 2009 Revenue:RM732.1m

Americas6%

M'sia15%

Asia43%

Americas

7%

Africa35%

FY 2010 Revenue:RM1,241.1m

Americas7%


6 March 2012 of 60


SECTION 2: OPPORTUNITIES

6 March 2012 of 60


FPSO: Fundamentals and prospects

1. Industry’s fundamentals

The fundamentals for the FPSO sector are favourable. Activities are

returning to more normalised levels after a dismal 2009, underlying the

positive macro (i.e. oil price rebound, higher E&P spending) and micro

drivers (i.e. increased drilling activities).

Fleet utilization has been robust. The number of idle FPSOs has

fallen considerably and field developments have been pacing up.

Africa, Asia and the Americas are the epicenter of FPSO activity.

These three regions play host to 62% of the world wide FPSO fleet, and

we believe they will remain the frontiers for FPSO operators.

Key drivers. Growth in these regions will be driven by a combination of

geological bounty, security concerns and domestic consumption factors

which will render the development of offshore fields the inevitable trend.

FPSO: Fleet utilization rate and idle units

80

85

90

95

100

0

2

4

6

8

10

12

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

Idle units (LHS) Utilisation rates (RHS)(Units)

Ave. Utilisation - 94%

(%)

Source: ODS-Petrodata

FPSO contracts awarded since 2009

Company Field Oil major Country Type Award date

SBM Aseng Total Guinea Leased 2009

Petrobras Papa-Terra Petrobras Brazil Owned 2009 Bumi Armada TGT Hoang Long Joint Operating Co (HLJOC) Vietnam Leased 2009 EOC Chim Sao Premier Oil Vietnam Leased 2009 Saipem Aquila ENI Italy Leased 2009 Bluewater Nan Hai CNOOC China Leased 2009 SBM Baleia Azul Petrobras Brazil Leased 2009 Bluewater Kitan ENI Timor Leste Leased 2010

Modec Guara Petrobras Brazil Leased 2010 BW Offshore Athena Ithaca UK Leased 2010 SBM Tupi NE Petrobras Brazil Leased 2010 Hyundai Goliat ENI Norway Owned 2010 Sevan Huntington E. ON UK Leased 2010 BLT Pagerungan Kangean Indonesia Leased 2010 Petrofac Cendor Phase 2 Petrofac Malaysia Owned 2010 Daewoo CLOV Total Angola Owned 2010

Petrobras Tupi x8 Petrobras Brazil Owned 2010

OSX-2 Waimea OGX Brazil Leased 2011

Petrofac Berantai Petro/Petronas Malaysia Owned 2011

BP Quad 204 BP UK Owned 2011

SBM Offshore Block 15/06 ENI/ Sonangol Angola Leased 2011

Teekay Knarr BG Norway Leased 2011

Bumi Armada Balnaves Apache Australia Leased 2011

Bumi Armada D1 ONGC India Leased 2011

Source: Pareto Research

6 March 2012 of 60


The current global supply and demand outlook is promising, and

offers new opportunities for growth in the industry. The chart below

summarises the current supply and demand picture. The supply side

consists of all producing and ordered units while the demand side is

calculated on the basis of outstanding projects, i.e. firm tenders,

planned and possible.

FPSO: Supply and demand – based on existing projects only

20161998 2000 2004 20122006 20142008 20102002

250

200

150

100

50

199619941990 1992

(Units)

250

200

150

100

50

Producing FPSOs Idle units re employed High demand Base Low demand

Source: ODS-Petrodata

Choice between leased and owned FPSOs among oil companies

19

1

19

0

3

1

3

3

1

1

6

2

1

0

4

1

1

1

1

4

3

2

2

2

2

1

24

14

13

9

7

6

5

4

3

3

2

2

2

2

1

1

1

1

1

Petrobras

CNOOC

Other

Total

ExxonMobil

BP

Chevron

Shell

Woodside

PetroVietnam

ENI

Statoil

Hess

Maersk O&G

Petronas

BHP

ConocoPhillips

Premier

PTTEP

CNR

Talisman

Addax

Kangean

Murphy

Santos

Afren

Leased FPSOs Owned FPSOs

Sources: International Maritime Associates Inc, Maybank-IB

6 March 2012 of 60


2. Snapshot of FPSOs currently deployed

There are 160 FPSOs in the world now. Of the total inventory, 149

units are currently in service or available worldwide while 11 units are

currently off field, and available for reuse.

Utilization rate is high, at 93%. The Asia Pacific region (Asia and

Oceania) has the largest count, with 47 FPSOs in operation. This is

followed by America: North, Central & Latin (39), Africa (37), Europe

(22) and the Mediterranean & Middle East (4).

12 new FPSOs ordered since a year ago, March 2011. According to

International Maritime Associates, Inc (IMA), 12 units of new FPSOs

have been ordered since March 2011 and these vessels are scheduled

to hit the market from 2013-2015.

Current deployment of global FPSO fleet: 149 units in the field

Legend

Number of FPSOs deployed in the region

Gulf Of Mexico

Mideast/

SW Asia

Australia/

NZ

Brazil

Far EastMediterranean5

2

1

14

20

3

32 37

13

Canada

Northern

Europe

22

Africa

South East Asia


6 March 2012 of 60


3. Outlook

Current order backlog for FPSOs worldwide stands at 40 units,

comprising 16 newbuilds and 24 conversions. Of the 40 units, 3 units

are on speculative orders without field contracts. Brazil currently

dominates orders for 21 FPSOs, which include 8 serial pre-salt units.

The underlying growth in Brazil is largely due to:

i) Petrobras‟ plans to develop a new pre-salt province entailing at

least 40 large scale FPSOs and

ii) compliance with local content clauses for FPSOs (up to 65%)

FPSOs in the pipeline – 40 units on order

Legend

Australia/

NZ

Brazil

Mediterranean

2

1

214

2

Northern

Europe

5

Africa

South East Asia

Number of FPSOs to be deployed per region

3 Speculative units without contracts in hand

Gulf Of Mexico

1

Mideast/

SW Asia

1


6 March 2012 of 60


The medium-term outlook. Projection-wise, 200-250 new orders for

FPSOs are expected to enter the market over the next 5 years. The

orders are categorized into 2 core groups for: (i) visible and (ii) future

emerging projects.

(i) Visible projects: In the planning pipeline are 125 firm projects

that potentially require FPSOs should the projects go to

development. FPSO is the only likely production solution for 100 of

these projects. The remaining 25 projects could require either

FPSOs or other types of production solutions (i.e. tension-legged

platform (TLP), semi-submersibles, SPAR). With a few exceptions,

all the projects are declared discoveries, some of which will require

multiple FPSOs for development.

(i) Future emerging projects: A reasonable estimate is that 75 to

125 FPSO projects will emerge over the next 5 years that are not

now visible. This estimate is based on an assessment of the

number of projects in the current planning list and was not visible a

few years ago.

4. Sensitivities of projects

Insensitive

Based on the analysis of the 125 potential FPSO projects, it is

estimated that about 30% are relatively insensitive to short-term

market conditions.

The decision to proceed will be based on long-term oil price

assumptions and potential of the project to build reserves.

The need to replace reserves and the opportunity to exploit large

hydrocarbon complexes provide continuous momentum for project

development.

This grouping comprises big projects involving large reservoirs

offshore Brazil and West Africa.

Sensitive

40% of the 125 projects are considered opportunistic projects,

which require a robust oil price environment to proceed.

They generally involve projects with relatively small reserves and

non-major oil operators.

These groupings are projects located in South East Asia.

Somewhat sensitive: 50/50

30% of the visible 125 FPSO projects are considered somewhat

sensitive to short term market conditions, where to some degree,

underlying short to mid-term crude oil prices are taken into account

in making an investment decision.

These projects are spread over a wide spectrum of geographical

areas and generally involve fields with mid-size recoverable

reserves, heavy oil or difficult access.

6 March 2012 of 60


Most likely scenario: 100-140 units by 2015. In our view, we see

orders for 100 to 140 FPSOs over the next 5 years, averaging 20-28

new units p.a. from 2012-2015. This includes new units and

redeployments, which will generate capital expenditure (capex) of

USD65b-85b over this period. The bulk of the variation between the 3

scenarios is in the small- to mid-size FPSO orders.

An 80:20 ratio for newbuild and conversion vs. redeployments. We

opine that 80% will be satisfied via newly built or converted units while

the remaining 20% of the FPSO projects will be on redeployment basis.

All redeployment will be of small- to mid-sized FPSOs.

Forecasted FPSO new orders over the next 5 years – 3 scenarios

Low case

Oil price: USD70-90/ bbl

Reasonable case

Oil price: USD90-110/ bbl

High case

Oil price: > USD110/ bbl Types of FPSO Capex

(USD’b)

Unit Capex

(USD’b)

Unit Capex

(USD’b)

Unit Capex

(USD’b) Large FPSOs

New converted units with 150-250,000 bpd 1.20 26 31.2 28 33.6 30 36.0

Topsides pre-salt hulls 0.80 8 6.4 8 6.4 8 6.4

Midsize FPSOs

New converted units with 80-150,000 bpd 0.60 24 14.4 29 17.4 34 20.4

Topside spec hulls 0.25 3 0.8 3 0.8 3 0.8

Modified redeployed FPSOs 0.30 3 0.9 4 1.2 5 1.5

Small FPSOs

New converted units below 80,000 bpd 0.40 25 10.0 34 13.6 42 16.8

Modified redeployed FPSOs 0.15 11 1.7 14 2.1 18 2.7

Total 100 65.4 120 75.1 140 84.6

Sources: International Maritime Associates, Inc, Maybank-IB

28-80% growth on the horizon. The next 5 years‟ forecast (2011-15)

of 100-140 units new FPSO order is a 28-80% increase when

compared against actual orders over the past 5 years (2006-10). The

strong growth rate may partly be attributed to the: (i) depressed global

financial and commodity markets in 2008-09 and (ii) FPSO market at

the pre-inflection stage, with growth accelerating YoY. Our expectation

is that FPSO orders will grow at an increasing rate as the need for new

oil supply sources grows and major deepwater finds continue.

Forecasts of FPSO orders over the next 5 years – by size

34 36 38

3036

42

36

48

60

78

100

120

140

0

40

80

120

160

Past five years Low scenario: USD 70-90 oil

Base scenario: USD 90-110 oil

High: scenario: USD 110-150 oil

(Units) Large FPSOs Midsize FPSOs Small FPSOs Series4


6 March 2012 of 60


5. Opportunities for Bumi Armada

A promising roadmap – aiming for Top 4. Bumi Armada targets to be

the fourth-largest FPSO operator by end-2013. In order to achieve this

feat, it needs to have a minimum of 8-9 FPSOs in its armada, which

implies the addition of 3-4 units to its existing fleet over the next 24

months.

A major force by 2013. This is a reasonable target, in our view

considering the myriad prospects in the FPSO market. Growing its

FPSO fleet by 3-4 units would only:

- meet 2-4% of the needs of 100-140 new projects expected to come

onstream over the next 5 years,

- account for 5-11% of the global forecasted small-sized FPSO

orders by 2015 (based on 36 to 60 projects),

- account for 27-36% of global FPSO orders, on a base case

scenario (low scenario, 30% sensitivity on small FPSOs; 11 units).

Target, focus and criteria. Based on the set criteria, we opine that

Bumi Armada will most likely focus on:

(i) small-sized FPSO projects,

(ii) converted FPSOs,

(iii) Asia Pacific (i.e. Asia and Oceania) and Africa markets, and

(iv) Oil companies that typically lease FPSOs.

25 potential projects identified. Based on our screening criteria listed

above, we have identified 25 potential projects, located in 12 countries:

Angola (1), Australia (1), Cameroon (1), Gabon (1), India (3), Indonesia

(4), Malaysia (5), Nigeria (2), Thailand (1), The Philippines (1), Tunisia

(1) and Vietnam (4). In terms of time-line:

25 potential projects oncoming projects that fit Bumi Armada

Year Country Field

2012 (8 projects) India Cluster 7 oil field (C 7)

Indonesia Madura BD, Bukit Tua (2 units)

Malaysia Gumusut-Kakap (temporary)

Malaysia PM301/PM325 (Kamelia)

Malaysia PM302 (Bunga Dahlia and Teratai)

Malaysia SB 302 (Belud)

Vietnam Dong Do/ Thang Long

2013 (5 projects) Angola Block 15/06

Indonesia Badik

Thailand B6/27

Vietnam Blk 102/106, Lac Da Vang (2units)

2014 (12 projects) Australia Lady Nora

Cameroon Etinde IE/IF

India Dhirubhai, KG-DWN-98/2 (2 units)

Indonesia Ande Ande Lumut

Gabon Dussafu Ruches

Nigeria Aje, Bilabri/Orobiri (2 units)

Vietnam Dai Nga

Malaysia N3/Spaoh

The Philippines West Linapucau

Tunisia Cosmos

Source: IMA

6 March 2012 of 60


Snapshot of projects that pass Maybank-IB’s selection screening criteria

Status Country Field Operator Water depth

(m)

First oil

possible

Bidding/ final design India C7 ONGC 85-90 2013

Bidding/ final design Indonesia Madura BD Husky/CNOOC 55 2014 Bidding/ final design Indonesia Bukit Tua Petronas 100 2014 Planned or being studied Malaysia Kamelia Petronas/ Hess <200 2014

Planned or being studied Malaysia Bunga Dahlia and Teratai Petronas 65-70 2014

Bidding/ final design Malaysia Belud Hess 155 2014

Bidding/ final design Vietnam Dong Do/ Thang Long PetroVietnam/Petronas 65 2013

Planned or being studied Indonesia Badik Anadarko 70 2013 Planned or being studied Thailand B6/27 PTTEP/Nippon Oil 35 2013 Planned or being studied Vietnam Blk 102/106 Petronas 25-30 2013

Planned or being studied Vietnam Lac Da Vang PetroVietnam 48 2013

Planned or being studied Australia Lady Nora Woodside 80 2014

Planned or being studied India Dhirubhai Reliance 1194 2014

Planned or being studied India KG-DWN-98 ONGC 225 2014

Planned or being studied Indonesia Ande Ande Lumut Genting O&G 100 2014 Planned or being studied Gabon Dussafu Ruches Harvest Natural Resources 115 2014

Planned or being studied Nigeria Aje Chevron/ Yinka 90 2014 Planned or being studied Nigeria Bilabri/ Orobiri Peak 40-300 2014 Planned or being studied Vietnam Dai Nga Idemitsu 120 2014

Planned or being studied Malaysia N3/ Spaoh Petronas 80 2014

Planned or being studied Tunisia Cosmos Chinook Energy 120 2013


The FPSO tenders that we gauge Bumi Armada has entered into to

date are in India, Indonesia, Vietnam, Malaysia, Angola and Nigeria.

FPSO tenders that Bumi Armada could have a high prospect of winning

Country Operator Description

India Oil & Natural Gas

Corporation (ONGC)

• We do not rule out Bumi Armada expanding further into the Indian FPSO market. ONGC‟s

Cluster7 FPSO tender is a likely project, which is at the „bidding/ final design stage‟ stage.

• ONGC requires an FPSO that can handle 30,000 bpd of oil and 63mmscfd of gas with storage

capacity of 0.5m bbl and operate up to 100m water depth.

• It is no secret that 8-10 prospective contractors took part in a pre-bid meeting by ONGC. The

notable names apart from Bumi are: (i) Malaysia-based M3Nergy, (ii) Singapore-based Tanker

Pacific, (iii) India‟s ABG Shipyard, (iv) Pipavav Shipyard and (v) Mercator.

• ONGC has another project in India, KG-DWN-98/ 2, a marginal field offshore Andhra Pradesh on

India‟s East Coast, that requires an FPSO. Production is slated for 2014/16. However, the project

had several false starts in the past. This project is at the „planned or being studied‟ stage.

• We rate Bumi Armada’s chances for the Cluster 7 FPSO project as high.

Indonesia Husky/CNOOC • Bumi Armada could penetrate Indonesia‟s FPSO market this year via Husky Energy‟s tender for

an FPSO to develop its Madura BD field off East Java.

• Husky requires an FPSO that can handle 8,000 bpd of condensates and 110 mmscfd gas with

storage capacity of 370,000 barrels. The FPSO is required to handle sour gas while operators

face strict bidding requirements in terms of both local cabotage laws and financial performance

bonds. The charter period offered is a firm 10-year term with up to 5 annual extensions.

• It has been reported that Bumi Armada‟s competitors are BW Offshore, M3nergy, Tanker Pacific

and EMAS. We gauge Bumi Armada’s chances to be fair for this project.


6 March 2012 of 60


FPSO tenders that Bumi Armada could have potentially participated in to-date (continued)

Country Operator Description

Vietnam PetroVietnam/

PETRONAS

• We expect the Lam Son Joint Operating Company FPSO contract to be awarded in 2012. The

FPSO will develop 2 oilfields in the Cuu Long basin field.

• This project is in the „bidding/ final design‟ stage. The field, co-owned by PetroVietnam and

PETRONAS, requires a FPSO with up to 18,000 bpd of oil processing capacity and storage

space for 350,000 barrels. The FPSO will initially process oil from the Thang Long fields, followed

by the Dong Do field.

• This is a 7-year fixed-term contract with the option to extend for 3 years. We understand that

Fred Olsen Production is the favoured bidder. It has received a Letter of Intent due to its

competitively-priced bid. However the contract has not yet been finalised.

• There are 3 other projects in Vietnam; (i) Dai Nga, (ii) Blk 102/106 and (iii) Lac Da Vang, which

require FPSO, MOPU/ FSO or fixed platform as production solutions. These projects are

scheduled to hit first oil in 2013-2015. These projects are at the „planned or being studied‟ stage.

Angola ENI • There are 5 projects in Angola, which are at the bidding or final design stage. They are:

(i) Block 14 – Negage, Lucapa,

(ii) Block 18 – Platina, Chumbo, Cesio,

(iii) Block 31 – Ceres, Heve, Urano, Titania, Terra, Miranda, Cordelia, Portia, Dione,

Leda, Oberon, Tebe,

(iv) Block 15/ 06 hubs – Ngoma/ Sangos/ Cabaca Norte/ Nzanza/ Cinguvu/ Mpungi/

Cabaca Southeast and

(v) Block 16 – Chisonga.

• These projects are at the „bidding/ final design stage‟ stage. Based on Bumi Armada‟s technical

track record limits, we opine that the Block 15/ 06 hubs appear to be the most likely target for

Bumi Armada due to the shallow water depth (470-1,420m); the other fields are in ultra-deep

waters (1,300-2,220m).

• For this particular field, the chances of a win are higher, in our opinion, as 2-3 FPSOs are likely to

be utilised. We are optimistic of Bumi Armada’s chances in clinching this contract .

• We have identified 4 other projects in Angola, which are at the planning stage and which are

currently being studied. They are the: (i) Block 32. (ii) Block 17/ 06, (iii) Block 18/ 06 and (iv)

Block 33. Still, Block 15/ 06 remains the most likely target due to the favourable environment

(easy to moor), water depth (470-1,420m) and existing relationship with ENI. The project is

expected to kick in by 2013 (earliest).

Nigeria Chevron/ Yinka, Peak • Bumi Armada‟s prospects in Nigeria are likely to be most favourable for the Aje field, owned by

Chevron/ Yinka. This field however is still at the planning stage. The water depth is favourable at

90m with the field targeted to achieve first oil by 2014. Apart from Aje, there are 10 other fields in

Nigeria, which are currently being studied.

Malaysia PETRONAS/ Hess/

Shell

• Up to 4 FPSO projects could be awarded this year in Malaysia. They are:

(i) SB 302 (Belud),

(ii) PM301/PM325 (Kamelia),

(iii) PM302 (Bunga Dahlia and Teratai) and

(iv) Gumusut-Kakap (a temporary FPSO with short-midterm charter)

• The first 3 are “fast-tracked” projects brought forward to boost Malaysian gas supply needs; first

gas/oil is targeted for 2014 while the last would be a short-term contract.

• Belud FPSO - It has been reported that the M3nergy and EMAS consortium submitted the lowest

bid in a recent tender for the Belud FPSO, offering the FPSO Lewek Arunothai whose charter

was prematurely terminated in Thailand‟s Arthit field in 4Q2011. However, considering the FPSO

Arunothai‟s chequered operating history, Hess is reported to have offered Bumi and MISC a

second chance to match the consortium‟s bid.

• Kamelia and Bunga Dahlia & Teratai FPSOs - Both the Kamelia and Bunga Dahlia/Teratai

projects will require floating solutions for field development. With both fields targeted to achieve

first gas by 2014, we expect contract awards by this year. Should M3Nergy win the Belud job, we

reckon either Bumi or MISC could win one of these.

• Spaoh FPSO. The Spaoh field aka NC3 will likely use an FPSO or fixed platform. Further

appraisal is being planned. This field will hit first oil by 2014/16.


6 March 2012 of 60


OSV: Fundamentals and prospects


OSV market currently going through an overbuilt period. Vessel

supply for now outstrips demand by 1.6x and the overhang situation

was at its crest in 2010, owing largely to the influx of orders for AHTS

and platform supply vessels (PSV) during the 2005-2007 period.

Fueled by the arrival of new vessels entering the market. 1,193

newbuilds comprising AHTS and PSVs entered the market in 2006-10,

exacerbated largely by the AHTS segment (707 units), which

outstripped the PSV (486 units) market by 1.45x.

The 5,000bhp AHTS market was the hardest hit. The oversupply

state in the AHTS market is more prevalent in the small vessel segment

(5,000bhp) and less on the higher specs (8,000-12,000bhp). The PSV

segment is slightly better off than the AHTS market, owing to the higher

investment requirement and lower volume.

Increasing number of vessels lying idle; utilisation rate at its

lowest in 2010. The number of idle vessels reached its zenith in 2010,

doubling its immobilized fleet YoY. The prevalent situation has brought

down utilization rates for AHTS and PSVs from a peak of 86-88% in

2006 to 70-72% in 2010. Old vessels (>15 years) experienced lower

utilization (40-55%) compared to newer builds (<10 years; >60%).

OSV: Global AHTS demand, supply & utilization OSV: Global PSV demand, supply & utilization

50

60

70

80

90

100

0

400

800

1200

1600

2005 2006 2007 2008 2009 2010Demand (LHS) Supply (LHS)

Utilisation (RHS) Malaysia Flag (RHS)

(%)(Units)

50

60

70

80

90

100

0

200

400

600

800

1000

1200

2005 2006 2007 2008 2009 2010Demand (LHS) Supply (LHS)

Utilisation (RHS) Malaysia Flag (RHS)

(Units) (%)

Sources: ODS-Petrodata, Maybank-IB Sources: ODS-Petrodata, Maybank-IB

OSV: Supply overhang in the AHTS segment OSV: Supply overhang in the PSV segment

400

600

800

1,000

1,200

1,400

1,600

1,800

2001 2003 2005 2007 2009 2011 2013 2015 2017

Demand Total supplyEffective supply Effective supply ex 30 ex y.o.s

(Units)

400

500

600

700

800

900

1,000

1,100

1,200

1,300

2001 2003 2005 2007 2009 2011 2013 2015 2017Demand Total supplyEffective supply Effective supply ex 30 ex y.o.s

(Units)


6 March 2012 of 60


OSV: Increasing numbers of vessels idle OSV: Utilisation rates (old vs new)

0

30

60

90

120

150

1Q06 1Q07 1Q08 1Q09 1Q10 1Q11

AHTS PSV(Units)

50

60

70

80

90

100

1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11

Built in/ before 1991 Built on/ after 2005(Utilisation)


2. Outlook

Positive trends over the next 18-24 months. The vessel market for

the 5,000bhp AHTS segment remains weak and oversupplied but the

8,000-12,000 bhp AHTS segment is seeing moderate progress in rates

as several recent contracts have secured decent charter rates.

Newbuilds tailing off. 338 orders committed in the past few years will

enter the market in 2011-14. Overall, newbuild deliveries are tailing off

as the pace of orders has significantly slowed down.

PSVs are in demand. Newbuilding activities so far are nominal, largely

confined to the larger specification vessels (i.e. 8,000-12,000bhp

AHTS) and PSVs with higher DWT (>3,000t dwt).

OSV: Snapshot of newbuild for AHTS OSV: Snapshot of newbuild for PSV

-

5

10

15

20

25

0

50

100

150

200

250

2001 2003 2005 2007 2009 2011 2013

Under 9,999 10,000-14,999 15,000-17,99918,000+ bhp' 000/unit

(Units) (bhp)

0

1

2

3

4

5

6

0

20

40

60

80

100

120

2001 2003 2005 2007 2009 2011 2013

<3,000 3,000-3,9994,000+ dwt' 000/unit

(Units) (bhp)


6 March 2012 of 60


OSV: Global OSV newbuild by order to-date OSV: Newbuilds (2006 – 2014)

0

50

100

150

200

250

300

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

AHTS PSV

M'sia AHTS M'sia PSV

(Units)

166 164

224

327312

291

104

36 4

0

50

100

150

200

250

300

350

2006 2007 2008 2009 2010 2011 2012 2013 2014

AHTS (Delivered) PSV (Delivered)

PSV (On coming) AHTS (On coming)

Newbuild vessels


Dayrates have stabilized. Dayrates after going through the floor have

stabilized, as the market gradually absorbs the overbuilt situation. The

low orderbook/fleet ratio of less than 20% supports our view that the

current momentum will continue into 2012. We expect day rates to

trade sideways and only improve over the next 18 months.

A cyclical recovery in motion. We expect a cyclical recovery in

demand for offshore vessels. The strength in oil prices is a key secular

driver for OSV demand for it encourages further offshore exploration

and drilling activities. OSVs will be required to support growth. Our

house economist forecasts oil price to average USD100/bbl in 2011

(WTI) and USD110/bbl in 2012. WTI crude ended last Friday at

USD106/bbl after touching a year high of USD109/bbl the week before.

All good things come to those who wait. Putting things into

perspective, the demand and supply disconnect for offshore vessels

should normalize in the later part of 2012. Utilisation rates are on the

rise, with the steepness of the increase depending on the type of

vessels.

OSV: Global AHTS term fixtures OSV: Global PSV term fixtures

2001 2003 2004 2005 2006 2007 2008 2009 20102002

(USD ‘000/day)4,000-9,999 bhp10,000-14,999 bhp15,000 bhp

70

60

50

40

30

20

10

50

(USD ‘000/day)

45

40

35

30

25

20

15

10

5

2001 2003 2004 2005 2006 2007 2008 2009 20102002

3,000- 3,999 dwt4,000+ dwt


6 March 2012 of 60


OSV: AHTS 4,000 – 6,000bhp dayrates vs. utilisation OSV: PSV 3,000 – 3,999 t dwt dayrates vs. utilisation

(USD ‘000/day) UtilisationDay rate

2001 2003 2004 2005 2006 2007 2008 2009 20102002

60

50

40

30

20

10

70

90

80

10025

20

15

10

5

(%)

60

50

40

30

20

10

70

2001 2003 2004 2005 2006 2007 2008 2009 20102002

60

50

40

30

20

10

70

90

80

100

(USD ‘000/day) UtilisationDay rate (%)


OSV: AHTS – average age profile (13.9 years) OSV: AHTS – average age of idle vessels (21.7 years)

64%

21%

15% 0-19 yrs

20-29 yrs

30 yrs+

34%

35%

31%0-19 yrs

20-29 yrs

30 yrs+


OSV: PSV – average age profile (12.6 years) OSV: PSV – average age of idle vessels (25.0 years)

73%

14%

13% 0-19 yrs

20-29 yrs

30 yrs+

29%

31%

40%0-19 yrs

20-29 yrs

30 yrs+


6 March 2012 of 60


OSV: Global market share by vessel demand OSV: Global market share by vessel supply

AHT6%

AHTS55%

PSV39%

AHT7%

AHTS54%

PSV39%


OSV: Global supply & construction OSV fleet

Supply Vessels

83%

Construction

Vessels

17%

AHT7%

AHTS54%

PSV39%

Accomodation17%

Derrick8%

Diving Support

15%

Others7%

Pipelay/Derrick Pipelay

25%

ROV Support

28%

Sources: ODS-Petrodata,, Maybank-IB

OSV: Global demand – construction vessels by type

Supply Vessels

88%

Construction

Vessels

12%

AHT3%

AHTS84%

PSV13%

Accomodation31%

Diving Support

19%

Pipelay/Derrick Pipelay

37%

ROV Support

13%


OSV: Global demand for AHTS, PSV and construction vessels – by region

41%

4%4%

3%

11%

25%

12%Asia Pac

Europe

N. America

Caspian & CIS

C&S America

Med & Mid East

West Africa

1,003 AHTS

13%

22%

22%

21%

11%

11%Asia Pac

Europe

N. America

C&S America

Med & Mid East

West Africa

716 PSVs

29%

21%13%1%

10%

11%

15%Asia Pac

Europe

N. America

Caspian & CIS

C&S America

Med & Mid East

West Africa


6 March 2012 of 60


a) South East Asia’s OSV outlook

Malaysia, Indonesia and Vietnam are most likely to provide the

most opportunity for PSVs in the region as the number of operational

platform installations in the region is expected to increase incrementally

over the next five years.

Although the majority of installations are currently in shallow water

locations offshore these countries, the region is reflective of the global

offshore industry in that it is moving increasingly towards deep and

ultra-deepwater fields particularly offshore Malaysia.

South East Asia platform capex by region (2011 – 15)

Malaysia27%

Cambodia1%

Vietnam21%

Thailand12%Phillipines

5%

Indonesia26%

Myammar5%

Brunei3%

Sources: Infield Systems Limited, Maybank-IB

b) Malaysia’s OSV outlook

Malaysia is well-positioned as a regional deepwater centre.

Malaysia‟s deepwater activities, actively promoted by PETRONAS, are

expected to feature prominently in the industry‟s exploration and

production (E&P) development as it is one of the most effective ways to

increase reserves and production.

Deepwater to contribute 1/3 of Malaysia’s production. PETRONAS

expects the deepwater sector to contribute 30-40% of Malaysia‟s O&G

production over the next 10 years, in line with the growing trend in the

region. A total of 17 deepwater production sharing contracts (PSC)

have been awarded to-date, covering 119,000sq km. At present, only

one is at the production stage.

Deepwater blueprint offers visible roadmap. We gather that 8

deepwater projects will be implemented. The Kikeh field is Malaysia‟s

first deepwater production field, which was successfully commissioned

on 17 Aug 2007 with an oil production rate of 120,000 bpd presently.

The Gumusut-Kakap field is up next, by 2013.

PSVs to support deepwater projects. With the Gumusut-Kakap and

Malikai deepwater projects projected to come onstream soon, there will

be a need for PSVs to support the field production activities.

6 March 2012 of 60


As well as upcoming shallow water projects. Deepwater projects

aside, 65-70 new platform structures are required for shallow waters in

5 years. 22 new open shallow water blocks, covering over 240,000 sq

km are open and available for data review. Based on PETRONAS‟

announcement, there is a need to construct 65-70 (small and large)

fixed structures and platforms for its domestic operations over the next

10 years.

Malaysia’s deepwater reserves potential

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Gumusut-Kakap650 m bbl

Metres below sea level

Jangas81 m bbl

Malikai108 m bbl

Ubah Crest215 m bbl

Kamunsu401 m bbl

Pisangan56 m bbl

Sources: PETRONAS, Maybank-IB

Malaysia’s implementation of deepwater projects

2007 Future development field projects

Kikeh

Gumusut/Kakap

Malikai

Kebabangan

Jangas

Ubah Crest

Pisangan

Kamunsu

Indicative First Oil

Appraisal & Reservoir Evaluation

Project Implementation

Field Development Studies

Exploration

Exploration Strategy

Preliminary Engineering

Source: PETRONAS

6 March 2012 of 60


Malaysia’s planned oil production: Shallow and deepwater fields

0%

20%

40%

60%

80%

100%

2010A 2011F2012F

2013F2014F

2015F2016F

2017F2018F

2019F2020F

Deepwater fields Shallow water fields

Source: PETRONAS

PETRONAS’ deepwater blocks worldwide

OBO (Mauritania)

1 block

CBO (Mauritania)

2 blocks

CBO (Cuba)

4 blocks

OBO (Cameroon)

2 blocks

COB (Mozambique)

3 blocks

OBO (Malaysia)

11 blocks

COB (Myanmar)

3 blocks

OBO (Indonesia)

3 blocks

COB (Malaysia)

7 blocks

OBO (Greenland)

2 blocks

OBO (Egypt)

2 blocks

OBO (Mozambique)

1 block

OBO (Vietnam)

1 block

JOB (Malaysia)

1 cluster

●

●

●●

●●

●

Deepwater hotspot

Emerging hotspot

Carigali operated block (COB)

Operated by others (OBO)

Joint operated block (JOB)

●

●

●

North Sea

Offshore Brazil

Gulf of Mexico●

West Africa●

●●●

Source: PETRONAS

6 March 2012 of 60


c) West Africa’s OSV sector outlook

Positive. The West African market will hold a great deal of positive

news for OSV players, in particular companies with high class AHTS.

New platform-driven growth. This is attributable to the rise in platform

projects over the next 5 years through new platform installations,

primarily in offshore major countries such as Angola, Nigeria as well as

emerging countries like Gabon and Ghana.

West Africa platform capex by region (2011 – 15)

Cameroon6%

Congo6%

Eq. Guinea6%

Gabon3%

Angola35%

Ghana4%

Ivory Coast1%

Nigeria36%

Sierre Leone3%


d) Latin America’s OSV sector outlook

Brazil to anchor growth. There is expected growth in O&G investment

for platforms and subsea assets in Latin America over the next 5 years.

Majority of the capex will be concentrated in Brazil, taking up 68% of

the capex in the region.

As well as Mexico and Venezuela. Mexico and Venezuela will also

see increasing demand for PSVs with new platform installations as well

as increase in the cumulative base of existing operational platforms as

PDVSA and PEMEX increase shallow water platform investments.

Latin America platform capex by region (2011 – 15)

Argentina

1%

Brazil68%

Chile1%

Mexico11%

Peru1%

Trinidad5%

Venezuela13%


6 March 2012 of 60


e) Offshore accommodation market outlook

Growing demand to support brownfield projects. The bulk of

accommodation services will be required in the shallow waters and

demand here is benign due to intermediate environmental conditions,

driven by aging infrastructure. However, high-end vessels capable of

working in intermediate and harsh conditions should see some growth

in demand in later years.

Vessels with DP hardware will be preferred. It is anticipated that

more and more DP2 and DP3 high-end vessels will enter the market

looking to capture the niche market. Region-wise, Brazil will require

high-end accommodation vessels for its ultra-deepwater works. In North

Asia, development at the South China Sea and Bohai Bay by Chinese

NOCs and the international partners will likely underpin accommodation

activities. In South East Asia (Malaysia, Indonesia, Thailand), majority

of the forecasted demand is targeted for IRM services. Notwithstanding

that, platform installations are also expected to drive demand for this

type of vessel.


We view the PSV and accommodation workbarge/boat markets as

a compelling opportunity for Bumi Armada. Africa and Latin America

(notably Brazil) will likely be its key markets for its future fleet expansion

programme.

8-10 new vessels planned. We expect Bumi Armada to add 8-10 new

vessels, a balanced combination of PSVs, MPSVs and accommodation

units over the next 2 years to capitalize on the strong demand for higher

spec OSVs.

Prospects for securing good charters are high. One of the PSV (to

be built by Nam Cheong for USD30m with an end-2012 delivery date)

will be contracted for the Gumusut-Kakap deepwater project on a long

term basis, which is expected to come onstream in 2013. This initial win

establishes Bumi Armada as a deep water PSV vessel operator and

bodes well for its prospects for further deepwater jobs.

Expecting high utilization for newbuilds. We opine that utilization

rates for the newbuilds (PSV and accommodation workbarges) will be

high and contracted on long-term charters.

Utilisation set to improve for the existing vessels too. Utilisation

rates for its existing fleet of vessels are also expected to improve in

2012, in our view, as demand picks up. Utilisation rates, in our view are

expected to increase by 0.5-1.0% per month throughout 2012 with a

target utilization rate of around 80% from 70% presently.

6 March 2012 of 60


T&I: Fundamentals and prospects


The Caspian region offers robust potential. The region, accounting

for 20% and 45% of the world‟s oil and gas reserves respectively, is

one of the most important drivers of O&G production growth.

O&G developments in Russia (notably the Vladimir Filanovsky

development) and Kazakhstan (Kashagan field) are expected to

drive these regions to become big buyers of topsides in the near

future. Turkmenistan, bordering Kazakhstan in the north and Iran in

the south, also offers potential.

Majority of the demand is expected to be for pipelay vessels

(derrick lay barges (DLB), in particular for the interlinking cluster

developments in Kazakhstan and Azerbaijan (Kashagan and Azeri

projects) as well as Turkmenistan and Russia.

Key Caspian Sea development projects

Project Country Reserves (mmboe)

Start-up date

Est. Peak Production

('000 bpd)

Est. Peak Date

Operator Production facilities

Kashagan Kazakhstan 10,285 2013 1,500 2023 NCOC Artificial Island

ACG Azerbaijan 4,367 1997 1,030 2011 BP Fixed platform

Shah Deniz (gas) Azerbaijan 2,930 2006 510 2018 BP Fixed platform

Severnyi Russia 2,608 2010 370 2024 LuKoil Fixed platform

Livanov Turkmenistan 1,664 2006 250 2021 PETRONAS FPSO/ fixed platform

SOCAR Assets* Azerbaijan 1,190 1949 410 1981 SOCAR Fixed platform

Khvalynskoye (gas) Kazakhstan-Russia 898 2016 90 2018 LuKoil Fixed platform

Cheleken Turkmenistan 833 1972 125 2015 Dragon oil Fixed platform

Kalamkas More Kazakhstan 720 2018 160 2021 NCOC Fixed platform

Pearls Kazakhstan 463 2018 100 2023 CMOC Fixed platform

Sources: Wood Mackenzie, Maybank IB; * State Oil Company of Azerbaijan

DLB vessel demand in the Caspian region

Azerbaijan

54%

Kazakhstan11%

Russia22%

Turkemenistan13%


6 March 2012 of 60


A duopoly market; with good day rates and long-term charters.

With the Caspian Sea almost a closed off market, as harsh winters,

render the region landlocked for much of the year, having a vessel

within the market is a key competitive advantage for operators. Only

two pipelay vessels are currently available in the region, one operated

by Momentum Group (Israfil Huseynov) and another by Bumi Armada

(Armada Installer). Given the limited number of players, dayrates and

utilization rates are expected to remain healthy over the next five years.

Caspian Sea heavy lift demand & supply Caspian Sea pipelay demand & supply

0

2

4

6

8

10

12

14

16

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Lay demand Lay supply(Vessel Days)

0

100

200

300

400

500

600

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Heavy Lift Demand Heavy Lift Suppy(Vessel Days)

Source: Infield Systems Limited Source: Infield Systems Limited


Armada Installer is on a firm 8-year charter to PCSB on attractive

terms. Petronas Carigali Sdn Bhd (PCSB) has guaranteed a minimum

number of hire days for the vessel. We estimate 60-70% utilization of

the vessel for the duration of the contract. This makes vessel cost

payback likely. We note that the guaranteed minimum hire days clause

kicks-in only in the fourth quarter of each final year (Oct-Dec).

Armada Installer can also bid for other jobs simultaneously. More

importantly, Bumi Armada is free to bid the vessel for works from the

other operators, i.e., Dragon Oil, BP, Lukoil etc., during the remaining

days ex- maintenance time. 7 projects are in various stages of

completion and another 3 major projects have been lined up in the

immediate future, providing Armada Installer great earnings visibility.

Enter the Dragon. Of particular interest to investors would be the

Cheleken field where Dragon Oil plans to spend USD1b from 2012 to

2015. Its upcoming projects encompass multiple jack-up platforms, at

Zhdanov A & B and Lam D, E, F and G, and this greatly solidifies the

visibility of the Armada Installer‟s order flow.

Anticipating higher utilization rates for the Armada Installer. There

could be much opportunity for Bumi Armada in the Dragon Oil T&I

projects as the Armada Installer (which is 2 years old) is arguably a

better candidate, being a younger and more modern vessel compared

to its rival; Israfil Huseynov – a 20-year old pipelay barge.

With elevated earnings. We estimate that clinching such jobs would lift

Armada Installer‟s utilization up beyond the 90% threshold (from 70%

currently), effectively raising revenue by RM9m p.a., based on an

average rate of USD70,000/day for 62 operating days.

6 March 2012 of 60


New assets to drive T&I earnings. Bumi Armada acquired the Acergy

Hawk (now named Armada Hawk) in June 2011. Thus far the vessel

has worked on riser installations for the FSO Sepat and will spearhead

bids for SURF installation and IRM projects in Asia. We expect Bumi

Armada to add a third vessel, similar to the Armada Hawk in 2012,

which would contribute about RM60m-90m in revenue p.a., assuming

USD70,000 dayrates. Moreover, Bumi Armada can fit an existing AHTS

– Tuah 104 with an A-frame to undertake T&I works.

Major projects worldwide SURF contracts

2010 2011 2012 2013

Contract Value

(USD m)

Contract Value

(USD m)

Contract Value

(USD m)

Contract Value

(USD m)

1 Block 17-CLOV 1,300 Greater Gorgon 945 Egina 1,300 Wahoo 928

2 Roncador 3 520 Lula Nordeste 650 Caricoa 960 Block 31 South East 920

3 Laggan Tormore 250 Liwan 585 Tweneboa 850 Browse LNG 783

4 Mars B 230 Block 15-06 460 Cernambi 656 Leviathan 750

5 Tamar 420 Guara-Phase 2 544 Wheatstone LNG 657

6 Guara-Phase 1 416 Gehem 450 Franco-FPSO 2 592

7 Barzan Phase 1 400 Ichthys 450 Iara-FPSO 1 496

8 Jack/St. Malo 300 Franco-FPSO 1 448 Moho Bilondo 2 320

9 Big Foot 230 Gendalo 360 Florim 288

10 Lucius 220 Shtokman 300 Rosebank 240

11 Prelude 180 Nsiko 300 Shenandoah 230

12 Papa Terra 150 Baleia Azul 288 Jubilee FPSO 1 220

13 Clair Ridge 90 Freedom 160 Pluto LNG 2 198

14 Waimea –OSX 1 68 Myammar M-9 131 Vito 190

15 West Nile Delta 125 Abadi LNG 126

16 Pipeline 100

17 Mad dog 100

18 Waimea 68

Total 2,300 5,114 7,197 6,812

Sources: Instok, Maybank-IB

Major subsea markets world wide Malaysia’s subsea market by definition

-

2,000

4,000

6,000

8,000

10,000

12,000

2010 2011 2012 2013 2014

Angola Australia Brazil

Nigeria UK GOM

(USD' m)

111157

276 254 243166

404

559

1,093

0

200

400

600

800

1,000

1,200

2004 2005 2006 2007 2008 2009 2010F 2011F 2012F

SURF Subsea Equipment(USD' m)

Source: Instok Source: Instok

6 March 2012 of 60


OFS: Fundamentals and prospects


PETRONAS’ capex blueprint denotes growth. PETRONAS is

projected to spend about RM250b in capex over the next 5 years

(2011-15). This equates to an average investment of RM50b p.a., which

is 25% higher than its 2010‟s spending. The bulk of its capex spending

will be redirected to domestic field development as it intensifies

exploration and development activities in the deepwater, shallow, brown

and marginal fields to lift production.

PETRONAS’ domestic strategy. On its E&P efforts, PETRONAS will

focus on:

(i) unlocking stranded resources by fast-tracking the development of

marginal fields projects,

(ii) improving enhanced oil recovery (EOR) efforts to optimise

existing fields‟ resources, and

(iii) intensifying exploration efforts to further grow its hydrocarbon

resources.

PETRONAS’ 3-prong strategy

Source: PETRONAS

PETRONAS’ targeted fields

Source: PETRONAS

6 March 2012 of 60


2. Outlook: Marginal field developments

Positive outlook. The countries in Asia Pacific, such as Malaysia,

Indonesia, Thailand, Vietnam and India offer the most promising

prospects, in terms of marginal field development. The growth is driven

by Government incentives.

Marginal field development plans in Asia Pacific

Country Marginal fields Outlook

Malaysia 90 hotspots identified, 25 to be developed

Positive outlook. Several projects have been announced (Sepat, Berantai). More to follow.

Indonesia 160 O&G fields identified Positive outlook. Government has identified 100 oil fields and 60 gas fields for development.

Thailand 40 O&G fields identified Positive outlook. Marginal fields are attracting more investors.

Vietnam 20 O&G fields identified Positive outlook. The government is developing marginal fields in Cuu Long basin in an effort to

boost production.

Australia 10 O&G fields identified Positive outlook. New innovative concepts have been developed to explore marginal fields, which are economically viable.

New Zealand 165 new marginal fields identified

Positive outlook. Government is keen on rapid development of smaller, economically marginal fields to meet country‟s energy deficit.

India 165 new marginal fields identified

Positive outlook. 44 fields have been monetized. 90 fields are in the process of being put to production.

China 30 O&G fields identified Moderate outlook. Progress on marginal fields has been restricted due to unfavourable PSC

conditions and tight government controls.

Sources: Origin Business Engineering B.V., Maybank-IB

Marginal field development to see rapid progress in Malaysia.

PETRONAS will adopt the fast track approach to execute its marginal

field projects, as it aims to secure 1st oil and/or gas as fast as possible

(within a 12-month period) with minimal capex and infrastructure

requirement. Development will be through innovative solutions.

PETRONAS will develop 25 domestic marginal fields as it seeks to

reverse declining output of Malaysia‟s existing reserves. The marginal

oil fields have 30m barrels of oil reserves and unlocking these fields is

expected to raise Malaysia‟s crude oil production by 55,000 bpd

(+10%). The capex required to develop a marginal field is around

USD800m and the breakeven cost is estimated at USD70/ bbl.

Marginal fields to be developed via the RSC model. The marginal

field programmes will be developed via Risk Sharing Contracts (RSC)

and not the conventional Production Sharing Contracts (PSC) accorded

to oil majors participating in Malaysia‟s major O&G fields. The RSC is

aimed at making the project viable and attractive for smaller

independent oil companies (IOCs).

PETRONAS has kicked off marginal field development, more to

emerge. The first two pilot projects, Berantai and Sepat, have been

rolled out and we anticipate 2 more (Balai and Bentara) to be awarded

soon. It is understood that at least 5 more hydrocarbon discoveries are

being looked at. The fields under consideration are said to include the

Cenang and Tembikai gas discoveries near Talisman Energy operated

Block PM 314. The other finds – Diwangsa, Rabung, Korbu, Desaru

and Jambu could also be on the table.

6 March 2012 of 60


3. Outlook: Enhanced Oil Recovery (EOR) projects

Enormous potential. Existing brownfields also offer an abundance of

opportunities. EOR potential in Malaysia is massive and is estimated to

be approximately 1b stock tank barrels. Existing fields will be

rejuvenated through enhanced oil recovery (EOR).

166,000 bpd, 1,000 idle wells, 955m bbls, 37 fields... Malaysia aims

to boost brownfield production by 166,000 bpd (+30% increase to

current total production) come 2020 using new EOR technologies.

There is an est. 955mboe trapped in 37 brownfields with 1,000 idle

wells. 60% of total EOR potentials in Malaysia reside in 6 reservoirs.

They are the Tapis, Guntong Upper, Guntong Lower, St Joseph, Tiong,

and Dulang fields. The crucial factor would be boosting the average

recovery factor to 45-55% from the current average of 36%.

Snapshot of Enhanced Oil Recovery (EOR)

Tapis Lower J

Guntong Upper I

St. Joseph B/G

Tiong J - 20/21

Guntong Lower I

Dulang E-12/3 (pilot stage)

Dulang E - 14 (pilot stage)

0

50

100

150

200Total potential: 955 MMstbNumber of reservoirs: 37Average size: 26 MMstb

CO2 miscible

Water Flood

HC miscible

Others

Group 1:570 MMSTB (60.4%)

Other potential reservoirs:374 MMSTB (39.6%)

Source: PETRONAS

...3x times larger than marginal field plans...The ultimate goal,

according to PEMANDU, is to add 220,000 bpd of oil from EOR

initiatives and marginal fields – accounting for 1/3 of domestic

production. The greater emphasis on brownfields stems from the

“relatively” easier, faster and lower incremental cost per barrel of

increased production. The ultimate winner we feel will be the company

able to deliver executable, cost effective and quick to deploy solutions.

...with RM45.9b capex committed. Petronas & Shell‟s EOR projects

for St. Joseph, South Furious (SF30), Barton and the Baram Delta

Operations (BDO) call for USD12b (RM36b) in investments to develop

the 9 fields of Sarawak and 4 fields in Northern Sabah. Meanwhile,

Exxon will be rehabilitating the Tapis (RM3.2b), Guntong, Tabu, Palas,

Seligi, Irong Barat and Semangkok fields (RM3.6b) and 2 mature gas

fields, Jerneh & Lawit Bintang (RM3.1b) off the peninsular.

6 March 2012 of 60



(i) Angsi EOR project. This is a fast-track project. PETRONAS

has set a target to commence operations by Sept 2013. It

requires a vessel-based sea-water reverse osmosis (SWRO)

plant (CEOR floater) with the capacity to desalinate

150,000bpd of seawater to increase oil recovery rates by

another 20%.

Water Standard to team up with local operator(s). US-based

Water Standard won the oilfield desalination project and will

likely partner an FPSO operator for this job. Conversion work is

expected to take 16 months to complete.

Potential winners. Bumi Armada, SapCrest Kencana

Petroleum, Uzma and Deleum are the names mentioned. We

think Water Standard could team up with one to two local

partners due to the massive capex and job scope.

Angsi: An immediate target for PETRONAS’s CEOR vessel

Sources: PETRONAS, Maybank-IB

(ii) St Joseph EOR. This is a similar project to Angsi but requires

a smaller SWRO unit. The project requires the vessel to handle

an initial 10,000bpd water and chemical injection during the

pilot phase (12 months). If this is successful, the vessel will

undergo modification to triple its injection capacity to

30,000bpd.

Requires a 30,000bpd SWRO now with an Angsi size unit

to follow. Unlike the Angsi field, the main asset (i.e. vessel) will

be owned by Shell with the winner earning project management

fees. However Shell intends to source a larger vessel when the

economic viability of the project has been ascertained, to

support the full field injection of 15,000bpd.

Relocation from Angsi to Sabah? We understand from

discussions with O&G service providers that chemical alkaline

surfactant polymer treatments are normally carried over a 3-4

year period. Based on the 150,000bpd processing capacity

required for the „Angsi SWRO unit‟, we estimate the vessel hull

size could at least be an aframax tanker (market price RM60m-

70m per unit). Considering the modifications and quantity of

topside equipment required we think it likely the same floater

6 March 2012 of 60


will be utilised at both fields, consecutively, allowing the capex

to be depreciated gradually.

Bidders and potential winners. Bumi Armada and six other

operators (BW Offshore, MISC, M3nergy, SapuraCrest,

Deleum and Tanjung Offshore) have been invited by Shell to

bid for an EPCIC contract to supply a CEOR vessel for the St

Joseph pilot project off Sabah. However, only two bidders

remain – Bumi Armada and Deleum.

Snapshot of 13 BDO & North Sabah oilfields to be developed

Sabah

Sarawak

EOR Project1. USD12b investment over 30 years

2. To develop 9 fields in the Baram Delta, Sarawak

and 4 fields in North Sabah

3. To recover 756m bbl of oil or 90-100k bopd4. To improve average recovery factor to 50%

5. To extend fields’ productive life to beyond 2040

St.

Joseph

South Furious 30

Barton

South

Furious

Bakau

West Lutong

Baronia

BaroniaBaratBetty

Bokor

Tukau

Sikau

Siwa

Source: Maybank IB

(iii) Tanjung Baram. Meanwhile, the Tanjung Baram EPS project,

awarded to a foreign party, is running into complications and

will likely miss the first oil production target (1,000-3,000bpd)

set for Jul 2012. A re-tender could recur should the issue

remain unresolved.

6 March 2012 of 60


SECTION 3: FINANCIALS, VALUATION, RISKS

6 March 2012 of 60


Financials

Registered robust profits in the past. Bumi Armada delivered a

RM277m net profit in 2009 (+85% YoY), RM351m in 2010 (+25% YoY)

and RM387m in 2011 (+10% YoY). These translate to a robust 3-year

historical net profit CAGR of 37% (2009-11).

Poised to break new ground. Looking ahead, we expect the earnings

trajectory to continue its climb, at least over the next 3 years, on the

back of stronger profits from all core divisions, namely FPSO, OSV and

T&I operations.

Set to enjoy strong and sustained growth. We project a strong 3-

year net profit CAGR of 25%, forecasting that Bumi Armada will deliver

a net profit of RM532m in 2012 (+37% YoY), RM628m in 2013 (+18%

YoY) and RM707m in 2014 (+13% YoY).

Growth will be driven by:

(i) 3 new FPSOs progressively coming onstream. We expect Bumi

Armada to secure 3 FPSO contracts in 2012-13 (i.e. Malaysia, India

and Angola). We expect the group to own a fleet of 8 FPSOs by

end-2013, elevating it to becoming the fourth-largest FPSO

operator worldwide by then.

(ii) OSV expansion and higher utilisation rates. We project Bumi

Armada will take delivery of 2 PSVs in 2012 and another 4

newbuilds in 2013-14. Expectation is for these new vessels to

generate revenue of RM29m-RM213m p.a. in total, lifting OSV‟s

topline by 6-28% respectively in 2012-13.

In terms of utilisation rates, we expect a progressive step-up, from

79% in 2012 (+7-ppt YoY) to 83% in 2013 (+4-ppt YoY). Growth will

largely be driven by higher charter days for its 8,000-12,000 bhp

AHTS and PSVs.

(iii) T&I’s Dragon Oil contract and contributions from new vessels.

In the T&I segment, we have assumed Bumi Armada will secure the

Dragon Oil T&I contract in the Caspian Sea. Bagging this project

will elevate utilisation of Armada Installer from 70% to above 90%.

With Bumi Armada taking delivery of Armada Hawk in 2H 2011 and

another SURF vessel by 2012 to participate in the IRM projects in

Asia, we project growth of the T&I EBIT at RM184m-RM190m p.a.

in 2012-14 respectively, and at RM117m in 2011 to

(iv) OFS division is the wild card. With the delivery of the one-off

Sepat FSO project, Bumi Armada aims to move to a recurring

income business model via the Angsi SWRO vessel projects. We

expect this project, to be awarded by 1H12, to generate EBIT of

RM56m p.a..

Optimised earnings impact from 2015. Putting things into

perspective, we expect Bumi Armada to enjoy the full effect of its

underlying strong earnings-generating assets in 2015. This will notably

come from the 3 new FPSOs, as the O&M charter rates kick in.

6 March 2012 of 60


Snapshot of assets growth FYE Dec (RM m) 2010A 2011A 2012F 2013F 2014F

Assets (unit)

- FPSO (contract signed) 3 5 7 8 8

- OSV 37 46 48 50 50

- T& I 1 2 3 3 3

Total 41 53 56 61 61

Utilisation rate (%)

OSV

- AHT 87 87 73 77 77

- 5,000 bhp AHTS 70 83 85 85 85

- 8,000 – 10,000bhp AHTS 50 45 73 83 83

- 12,000 bhp AHTS 100 100 100 100 100

- Workbarge/ boat 80 74 88 95 95

- PSV - 90 90 90 90

- Others 73 83 80 80 80

T&I

- Armada Installer 70 75 92 92 92

- Newbuild (2) - 95 95 95 95


Not ruling out further upside potential. We do not discount the

possibility of Bumi Armada adding another new small-to medium-sized

FPSO beyond the projected 3 units, which would effectively lift its

FPSO fleet size to above 8 units. In our modeling, we have also not

imputed the expectation of any other production floaters (i.e. FSO).

Overall, we opine Bumi Armada has the balance sheet, skill sets and

appetite to undertake this.

Has the ability for growth. Our forecasts suggest that Bumi Armada‟s

net gearing level will range between 0.5x and 0.6x in 2012-14. This is

below the internal threshold of 1.5x set by management. Hypothetically

gearing up to 1.5x in 2012 could effectively lift borrowings by RM3.5b

(i.e. 3-4 FPSOs).

Has the balance sheet to take up another FPSO. We estimate that

taking on the extra debt will still be sufficient for Bumi Armada to fund

the expansion for a small-sized FPSO. As a benchmark, the capex to

construct/convert a small-sized FPSO from a tanker (<80,000 bpd

capacity) would range between USD300m-USD500m. The cost to

modify an existing smaller unit is estimated at USD100m-USD250m.

Segmental breakdown FYE Dec (RM m) 2010A 2011A 2012F 2013F 2014F

Revenue 1,241.4 1,543.9 1,800.7 2,220.6 2,504.3

- FPSO 553.4 609.2 743.9 965.4 1,097.4

- OSV 419.7 481.9 622.6 686.1 688.4

- T& I 268.3 242.3 334.2 334.0 344.8

- OFS 0.0 210.5 100.0 235.0 373.8

EBIT 467.1 518.3 621.8 745.7 835.2

- FPSO 179.2 200.2 227.5 260.6 330.2

- OSV 88.9 116.8 175.0 207.2 221.0

- T& I 148.5 117.2 183.8 183.7 189.6

- OFS 22.7 21.0 13.0 40.8 69.3


6 March 2012 of 60


Significant capex going forward. Bumi Armada will spend heavily on

capex (RM6.7b in total, in 2011-15) to fund its expansion programmes.

As such, we do not expect significant dividend payout in the near term.

Bumi Armada: Capex profile

0.50.7

0.8

0.50.3 0.1

0.20.4

0.2

1.2 1.4 1.1

-0.1

0.1

0.3

0.5

0.7

0.9

1.1

1.3

1.5

2008 2009 2010 2011-14

FPSO OSVs T&I Others(RM b) RM6.7b


Progressive dividend policy. Management intends to adopt a

progressive dividend policy in determining the level of dividend

payment, with the level of cash, gearing, debt profile, retained earnings,

capex and investment plans to be taken into consideration.

Projected capex for FPSO orders: Capex to build/convert FPSOs varies widely,

depending on unit size, complexity and application.

Large FPSOs:

A large 150,000+ bpd FPSO intended for use offshore Africa or Brazil

can cost USD1b to USD2.2b.

As benchmarks, capex for the Clov FPSO is USD1.8b, Usan USD1.6b,

Pazflor USD2.1b and the P62 and P63 FPSOs are around USD1b.

Given the expected mix of future orders of large FPSOs, the notional

capex of USD1.2b is a reasonable average cost to build such a unit.

Mid-size FPSOs:

An 80,000-150,000 bpd unit can range from USD0.4b to USD1.4b.

As benchmarks, capex for the P.C. de Itajai conversion is estimated

around USD400m. Goliat, designed for harsh environment is USD1.1b,

Quad 204 is USD1.3b.

The notional capex of USD0.6b to build or convert or convert a unit and

USD0.3b to modify/upgrade an existing vessel is representative of the

average capex for midsize FPSOs.

Small-size FPSOs:

A >8,000 bpd unit can range from USD300m to USD500m.

As benchmarks, the Chim Sao capex was USD400m. Cost to modify a

smaller unit is around USD100m - USD200m.

The cost to modify/ upgrade East Fortune for Berantai is about

USD345m. Modifying/ upgrading Glas Dowr for Kitan is around

USD120m-USD150m, the OSX1: USD200m.

The notional capex of USD0.4b to build or convert a small FPSO and

USD0.2b to modify/ upgrade an existing vessel.

Source: International Maritim Associates, Inc

6 March 2012 of 60


Valuations

Target price: RM4.88. Our target price is based on a sum-of-parts

(SOP) valuation.

The FPSO, OSV, T&I and OFS (i.e. SWRO unit) operations are

valued based on discounted cash flows (DCF), using a WACC

of 4.5%. DCF is a reasonable method, in our view, considering

that FPSO contracts are typically chartered out on a long-term

basis (7 years + option period) while the OSVs, T&I and OFS

vessels tend to see 1-8 year contracts.

We value the OFS‟ EPCC operations on price-earnings

multiples.

We ascribe a scrap value to their assets (i.e. FPSO, OSV, T&I

and OFS) based on an estimated scrap steel tonnage.

At our RM4.88 target price, Bumi Armada would be trading at 26.8x

2012 PER which is not excessive in our view, considering we are

expecting a strong 3-year net profit CAGR of 25%.

SOP valuations

Terminal growth rate

Division Value

(RM’m) Value

(RM/share) Methodology

FPSO 6,585 2.25 DCF

OSV 4,871 1.66 DCF

T & I 3,528 1.20 DCF

OFS 385 0.13 DCF on SWRO unit and 10x PER on EPCC

Scrap value 638 0.22 FPSOs, OSVs, T&Is

Net debt (1,760) (0.60) 2011

Total 14,291 4.88

Source: Maybank-IB

Key assumptions to our WACC estimate are laid out in the table

below, where we have applied a 4.0% risk-free rate, 6.5% market risk

premium and 1.0 beta. We have assumed a long-term: (i) 80:20 debt-

to-equity structure and (ii) cost of debt of 3.0%

Assumptions and basis used for WACC discount rate

Risk free rate Rf 4.0% 10-year government bond yield

Long-term cost of debt Kd 3.0% Average 3.0% effective interest rate

(Maybank IB‟s forecast)

Market risk Rm 10.5% Maybank IB‟s in-house assumption

Beta β 1.0

Target capital ratio

- Debt / (debt + equity) Wd 80% Target gearing

- Equity / (debt + equity) We 20% 1 – target gearing

Cost of equity Ke 10.5% = Rf + (Rm – Rf) β

WACC Wc 4.5% = Kd (1-tax) (Wd) + Ke (We)

Source: Maybank IB

6 March 2012 of 60

Bumi Armada

Peers valuations: FPSOs

FPSO operator peer comparison (Calenderised)

Company Market Cap 3-yr EPS 3-yr EBITDA EV/ EBITDA EV/ EBIT PER Div yield Gearing ROE P/ BV

(USD m) CAGR (%) CAGR (%) (x) (x) (x) (%) (x) (%) (x)

2011 2012 2013 2011 2012 2013 2011 2012 2013

SBM Offshore 3,446.6 25.0 11.8 6.7 6.3 5.7 68.4 9.9 9.1 8.1 7.6 6.7 6.2 0.9 21.1 1.9

BW Offshore 985.0 76.0 37.9 8.7 6.2 5.2 21.0 14.3 11.3 nm 9.1 7.1 8.7 1.1 8.5 1.2

Modec Inc 868.4 28.6 nm 18.7 16.5 11.4 nm 29.3 24.4 22.7 16.0 11.9 1.8 0.4 8.5 1.0

Fred Olsen 143.8 nm nm 5.5 4.8 4.3 17.2 18.6 16.7 nm nm nm 7.4 0.0 0.5 0.8

Sevan 127.5 nm nm

22.3 12.8 nm nm 12.6 nm nm nm nm - 1.5 0.9 0.7

EOC 117.5 8.7 4.2 7.3 6.3 6.5 12.6 10.1 11.0 4.9 3.2 3.4 - 1.9 11.0 0.2

Simple Average 11.5 8.9 6.6 29.8 15.8 14.5 11.9 9.0 7.3

Selected peers average (weighted) 7.7 6.3 5.4 44.7 12.1 10.2 8.1 8.3 6.9

Sources: Bloomberg, Maybank-IB Note: *Acquired Prosafe Productions in Dec 2010, 2011-13 net profit CAGR: 20%

Peers valuations: T&I and OSV operators

FPSO operator peer comparison (Calenderised)

Company Market Cap 3-yr EPS 3-yr EBITDA EV/ EBITDA EV/ EBIT PER Div yield Gearing ROE P/ BV

(USD m) CAGR (%) CAGR (%) (x) (x) (x) (%) (x) (%) (x)

2011 2012 2013 2011 2012 2013 2011 2012 2013

Saipem (T&I) 22,212.53 13.2 12.5 8.9 8.4 7.1 12.7 12.1 10.2 18.2 16.3 13.9 2.2 1.0 21.06 3.6

Technip (T&I) 11,908.49 19.3 17.4 8.7 8.2 6.3 10.8 10.4 7.9 17.2 17.2 13.6 1.0 1.0 21.06 2.5

Subsea 7 (T&I)* 8,176.78 148.6 160.4 8.9 7.1 5.0 13.6 10.0 6.9 18.7 16.3 11.8 0.8 0.1 8.47 1.4

Farstad (OSV) 1,149.6 19.2 9.4 7.6 7.4 6.9 11.9 11.4 10.7 11.5 10.3 8.7 3.0 0.8 8.57 1.0

Ezra (OSV) 889.6 20.9 41.1 18.3 13.5 11.3 25.5 17.6 14.6 16.7 10.8 8.0 0.4 1.1 8.50 1.0

Solstad (OSV) 723.8 110.9 20.6 10.9 7.7 6.8 27.0 15.1 12.9 11.6 9.0 3.1 1.9 7.41 0.9

T&I average 8.8 7.9 6.2 12.4 10.8 8.4 18.1 16.6 13.1

OSV average 12.3 9.6 8.3 21.5 14.7 12.8 14.1 10.9 8.6

Sources: Bloomberg, Maybank-IB Note: *Acquired Acergy

6 March 2012 of 60


Risk factors

Bumi Armada‟s wide ranging business profile opens the group to a

broad spectrum of operational, geographical and environmental risk.

Operating in multiple countries and compliance with additional local

regulations may hamper operations and increase operating costs.

Below is a non exhaustive list of the major risk factors confronting Bumi

Armada.

Oil price levels affect long-term investment plans. Oil majors‟

investment plans are dependent on long-term oil price expectations,

which can be affected by low and/or volatile oil price levels. We have

seen oil field exploration/developments shelved when the oil price fell

below USD50/bbl (average) in 2008, and there is no certainty this will

not recur. Our economics team projects an average USD100/bbl crude

oil price (WTI) in 2012 (2011: USD95/bbl).

Currency fluctuations. Revenue from customer contracts, capex and

operating cost is largely denominated in USD which do provide for

some form of a hedge (but not in full). In addition, Bumi Armada reports

results in RM, which leaves the group open to foreign currency

movements especially fluctuations of the USD against the RM. We

estimate that a 1 sen strengthening or weakening of the RM against the

USD to impact bottomline by RM2m (with 0.4% of its earnings in RM).

Financial leverage. Bumi Armada has and will maintain a significant

level of leverage in line with the industry norm. Refurbishments are

made before each redeployment of FPSOs and the vessels will require

extensive repairs at regular intervals to meet the operating certification

needed. High debt service and other contractual obligations will render

Bumi Armada highly sensitive to any interruption in cashflows.

Contractual requirements. FPSO contracts can encompass turnkey

contracts for the vessel‟s construction, conversion and refurbishment.

Turnkey: FPSO conversions and refurbishment projects involve

significant procurement of equipment, supplies and equipment. Risk

include lack of supply of, or higher than expected cost of materials,

equipment and manpower.

Delivery: FPSO contracts have strict delivery schedules and failure

to adhere to set dates could result in lower daily charter fees or

even late penalties.

Dependence on external parties: FPSO operators can be heavily

dependent on vendors throughout the process, from equipment and

manpower to even yard space.

Cost overruns: Historical FPSO projects‟ cost overruns were often

tied to increases in price or requirements of manpower, fabrication

materials (e.g. steel) or additional requirements or changes in

orders from clients (VO). Unless protected by a price escalation

clause, Bumi Armada may face reduced earnings or even losses.

6 March 2012 of 60


Performance: Post deployment, the FPSO would be required to

maintain a pre-agreed commercial uptime, technically possible

operating days less allowance for maintenance and emergencies.

Failure to meet the set targets could result in reduced charter fees,

suspension of charter fees or even penalties being imposed.

Early termination: Lease contracts are structured to provide the

lessor with flexibility. Firm contracts are only offered for the

estimated time required to exploit reserves but vessels have to be

configured with the potential full period in mind. Should the

termination of the contract occur and Bumi fail to redeploy the

vessels on time, Bumi could suffer both reduced income and even

impairment charges on its FPSOs

External factors/events: This comprises weather and natural

hazards (typhoons, tsunamis, etc), pirate attacks (more likely

kidnap of crew and shutdowns versus hijacks) and policy changes

of governments.

Regulatory risks. As Bumi Armada operates worldwide, it must adhere

to the offshore O&G industry regulations across multiple areas:

Local content: Several emerging countries are attempting to boost

local industries i.e. fabrication, process equipment, etc. by

introducing local content clauses. This includes Nigeria, Angola,

Brazil and Malaysia, which require portions of the system to be

fabricated at the local facilities.

Environment: Bumi Armada‟s single hull FPSOs cannot operate in a

number of regions (North America and Europe) and the number of

areas are set to increase. Aside from hull requirements, rules

relating to waste storage and discharge, carbon emissions, etc. will

have an impact on Bumi Armada‟s operating expenses.

Cabotage: Bumi Armada‟s vessels (FPSOs and OSV) must comply

with each country‟s licences, permits and certifications. Failure to

comply could result in fines or vessel seizure. For example, Nigeria

requires annual renewal of all license and imposes fines of up

RM300,000 per OSV.

6 March 2012 of 60


Financial statements

INCOME STATEMENT (RM m) BALANCE SHEET (RM m)

FY Dec 2011A 2012F 2013F 2014F FY Dec 2011A 2012F 2013F 2014F

Turnover 1,543.9 1,800.7 2,220.6 2,504.3 Net Fixed Assets 4,201.2 5,274.3 6,247.5 6,840.7

Cost of goods sold (883.1) (984.8) (1,226.2) (1,383.6) Invts in Assocs & JVs 151.3 207.6 264.3 332.0

Gross profit 660.8 815.9 994.4 1,120.7 Other LT Assets 423.3 423.3 423.3 423.3

Other operating (exp)/inc. (142.5) (194.1) (248.7) (285.6) Cash & ST Invts 1,248.5 990.5 1,539.2 1,554.1

EBIT 518.3 621.8 745.7 835.2 Other Current Assets 912.0 965.5 1,053.2 1,112.4

Net int (exp)/ Inc (109.2) (113.0) (138.2) (155.7) Total Assets 6,936.2 7,861.3 9,527.5 10,262.5

Associates & JV 26.8 56.3 56.7 67.7

Exceptional gain/ (loss) (27.7) 0.0 0.0 0.0 ST Debt 447.4 447.4 447.4 447.4

Pretax profit 435.9 565.2 664.3 747.2 Other Current Liab 353.1 373.1 405.7 427.8

Tax (70.6) (27.0) (30.8) (34.3) LT Debt 2,559.8 3,000.0 4,000.0 4,000.0

Minority interest (5.7) (6.0) (6.0) (6.0) Other LT Liab 33.2 33.2 33.2 33.2

Net profit 359.7 532.2 627.5 706.9 Shareholders Equity 3,528.0 3,987.0 4,614.5 5,321.4

Net profit ex EI 387.3 532.2 627.5 706.9 Minority Interest 14.7 20.7 26.7 32.7

Total Cap. & Liab 6,936.2 7,861.3 9,527.5 10,262.5

EBITDA 845.1 1,048.7 1,272.6 1,442.0

Sales Growth (%) 24.4 16.6 23.3 12.8 Share capital 2,928.5 2,928.5 2,928.5 2,928.5

EBITDA Growth (%) 18.1 24.1 21.4 13.3 Net Debt 1,758.7 2,456.9 2,908.2 2,893.3

EBIT Growth (%) 10.9 20.0 19.9 12.0 Working capital 1,360.0 1,135.6 1,739.3 1,791.2

Effective Tax Rate (%) 16.2 4.8 4.6 4.6 Gross gearing 85.2 86.5 96.4 83.6

CASH FLOW (RM m) RATES & RATIOS

FY Dec 2011A 2012F 2013F 2014F FY Dec 2011A 2012F 2013F 2014F

Net profit 387.3 532.2 627.5 706.9 Gross Margin (%) 42.8 45.3 44.8 44.8

Dep. & amortization 326.8 426.8 526.8 607.8 EBITDA Margin (%) 54.7 58.2 57.3 57.6

Chg. In working capital (596.6) (33.6) (55.0) (37.1) EBIT Margin (%) 33.6 34.5 33.6 33.3

Other operating CF 212.6 (50.3) (50.7) (61.7) Net Profit Margin (%) 25.1 29.6 28.3 28.2

Operating CF 330.2 875.1 1,048.7 1,215.8 ROAE (%) 17.6 14.2 14.6 14.2

Net capex (1,058.7) (1,500.0) (1,500.0) (1,200.0) ROA (%) 9.3 9.2 9.2 9.1

Chg in LT investment 0.0 0.0 0.0 0.0 ROCE (%) 9.7 10.2 10.2 10.2

Chg in other assets (1,058.7) (1,500.0) (1,500.0) (1,200.0) Div Payout Ratio (%) 17.9 0.0 0.0 0.0

Investment CF (1,167.6) (1,500.0) (1,500.0) (1,200.0) Interest Cover (x) 4.7 5.5 5.4 5.4

Net chg in debt (410.4) 440.2 1,000.0 0.0 Debtors Turn (days) 60.3 70.4 68.6 71.5

Chg in other LT liab. 2,218.5 (73.2) 0.0 0.0 Creditors Turn (days) 90.7 63.1 60.2 63.1

Other financing CF 0.0 0.0 0.0 0.0 Inventory Turn (days) 0.6 0.6 0.6 0.6

Financing cash flow 1,808.1 367.0 1,000.0 0.0 Current Ratio (x) 2.7 2.4 3.0 3.0

Net cash flow 970.7 (258.0) 548.7 15.8 Quick Ratio (x) 2.7 2.4 3.0 3.0

Net Debt/Equity (x) 0.5 0.6 0.6 0.5

Capex to Debt (%) 0.4 0.4 0.3 0.3

N.Cash/(Debt)PS (sen) (60.1) (83.9) (99.3) (98.8)

Opg CFPS (sen) 31.6 31.0 37.7 42.8

Free CFPS (sen) (24.9) (21.3) (15.4) 0.5


6 March 2012 of 60


SECTION 4: APPENDICES

6 March 2012 of 60


Appendix : Directors & Management

Board of Directors

Name Designation Remarks

Dato‟ Sri Mahamad Fathi l bin

Dato‟ Mahmood

Non-Independent Non

Executive Chairman

Entrepreneurial experience across multiple sectors

Directorships in numerous companies

Diploma, Institute of Management Specialist, fellow, British Institute of

Management, UK

Dato‟ Ahmad Fuad bin Md Ali Non-Independent Non

Executive Deputy

Chairman

Over 20 years experience in finance, accounting auditing & consultancy

Involved in the O&G industry since 2000

ACCA, Member of MICPA, Public Accountant in MIA

Saiful Aznir bin Shahabudin Independent Non

Executive Director

Over 10 years experience in general management, corporate finance &

privatization

CEO of Sharikat Permodalan Kebangsaan Berhad

MBA, Chicago University, BBA, Western Michigan University, USA

Alexandra Elisabeth Johanna

Maria Schaapveld

Independent Non Executive Director

16 years in Corporate Banking and Investment Banking at ABNAMRO Bank

Head of Europe for RBS during 2008

Degree, Politics, Philosophy & Economics , Oxford University, UK and Masters in

Development Economics ,Erasmus University, Netherlands

Andrew Philip Whittle Independent Non Executive Director

40 years of technical and managerial experience in the petroleum exploration

and production industry worldwide focusing on South East Asia/Australia

Member of the American Association of Petroleum Geologists, the Society of

Professional Well Log Analysts and the Petroleum Exploration Society of

Australia

Bachelor of Science, First Class Honours in Geology, University of Adelaide,

Australia

Chan Chee Beng Non-Independent Non

Executive Director

30 years experience in investment banking, financial management and

accounting

Joined Usaha Tegas in 1992, serves as executive director and sits on the Board

of Directors of Usaha Tegas related companies

Degree, Economics & Accounting, Newcastle, ICAEW, UK

Farah Suhanah Ahmad Sarji Non-Independent Non

Executive Director

Legal experience in both the government service and private sector

Managing partner of own law firm since 2003

BA in Law, Kent University, Barrister at Law Middle Temple, UK

Lim Ghee Keong Non-Independent Non

Executive Director

Over 20 years experience in treasury and credit management

Group Treasurer of Usaha Tegas

Degree, Business Administration, Hawaii University, USA

Hassan Assad Basma Chief Executive Officer Over 30 years of experience in the O&G sector, 17 years in Asia

Previously at Kvaerner E&C Singapore & Far East Single Buoy Mooring

B. Sc, Engineering, Manchester Institute of Science & Technology University, UK

Shahrul Rezza Hassan Chief Financial Officer Over 15 years of corporate finance/ fund raising and financial management

experience

Joined Bumi Armada in 2005, was previously with Usaha Tegas

B. Sc, Economics, Bristol University, UK

Source: Company

6 March 2012 of 60


Senior Management

Name Designation Remarks

Hassan Assad Basma Chief Executive Officer Over 30 years of experience in the O&G sector, 17 years in Asia

Previously at Kvaerner E&C Singapore & Far East Single Buoy Mooring

Shahrul Rezza Hassan Chief Financial Officer Over 15 years of corporate finance/ fund raising and financial management

experience

Joined Bumi Armada in 2005, was previously with Usaha Tegas

Andrew Day Lamshed Sr. VP, Floating

production systems

Over 25 years of experience in the O&G sector

MBA, Monash Univesity, Bachelor of Engineering, Ballarat College, Australia

Wee Yam Khoon Sr. VP, OSV Co-founder of Bumi Armada Navigation, 33 year veteran of Bumi Armada

One the most experienced Malaysians regarding OSVs

Massimiliano Bellotti, Sr. VP, T&I Over 14 years of experience in O&G management, engineering & construction

M.Sc Aircraft Design, Delft Univesity, Degree in Aircraft Engineering, Pisa

University

Adriaan Petrus Van De Korput Sr. VP, Projects Veteran of Bluewater Offshore Productions Systerms B.V.

M.Sc Management, Brussels Univesity, Bs. Sc Mechanics, Rijswijk, Netherlands

Jonathan Edward Duckett Sr. VP, Corporate

planning

Over 18 years experience in research, planning & strategy

BA, Business Admin, The American College, London

Madhusudanan Madasery Balan Chief Talent Officer Over 22 years of HR experience in O&G and other industries

M. Arts Public Administration, numerous other degrees from India

Noor Azmi bin Abdul Malek VP, BAE Over 20 years experience in engineering

B. Sc, Mechanical Engineering, Colorado State University

Noval D‟avila Paredes VP, Corporate HSEQ Over 16 years experience in HSEQ in Brazil

MBA, Finance, Ibmec, Master in Production Engineering, Rio Federal University

Choong Guan Huat VP, Strategic

Procurement

Over 18 years experience in procurement and project management

Advanced Diploma, Business Admin, UK, Certified Purchasing Manager, USA

Source: Company

6 March 2012 of 60


APPENDIX 1

Definition of Ratings

Maybank Investment Bank Research uses the following rating system:

BUY Total return is expected to be above 15% in the next 12 months

HOLD Total return is expected to be between -15% to 15% in the next 12 months

SELL Total return is expected to be below -15% in the next 12 months

Applicability of Ratings

The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are

only applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not

carry investment ratings as we do not actively follow developments in these companies.

Some common terms abbreviated in this report (where they appear):

Adex = Advertising Expenditure FCF = Free Cashflow PE = Price Earnings

BV = Book Value FV = Fair Value PEG = PE Ratio To Growth

CAGR = Compounded Annual Growth Rate FY = Financial Year PER = PE Ratio

Capex = Capital Expenditure FYE = Financial Year End QoQ = Quarter-On-Quarter

CY = Calendar Year MoM = Month-On-Month ROA = Return On Asset

DCF = Discounted Cashflow NAV = Net Asset Value ROE = Return On Equity DPS = Dividend Per Share

NTA = Net Tangible Asset ROSF = Return On Shareholders‟ Funds

EBIT = Earnings Before Interest And Tax P = Price WACC = Weighted Average Cost Of Capital

EBITDA = EBIT, Depreciation And Amortisation P.A. = Per Annum YoY = Year-On-Year

EPS = Earnings Per Share PAT = Profit After Tax YTD = Year-To-Date

EV = Enterprise Value PBT = Profit Before Tax

Disclaimer

This report is for information purposes only and under no circumstances is it to be considered or intended as an offer to sell or a solicitation

of an offer to buy the securities referred to herein. Investors should note that income from such securities, if any, may fluctuate and that each

security‟s price or value may rise or fall. Opinions or recommendations contained herein are in form of technical ratings and fundamental

ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on

price and volume-related information extracted from Bursa Malaysia Securities Berhad in the equity analysis. Accordingly, investors may

receive back less than originally invested. Past performance is not necessarily a guide to future performance. This report is not intended to

provide personal investment advice and does not take into account the specific investment objectives, the financial situation and the

particular needs of persons who may receive or read this report. Investors should therefore seek financial, legal and other advice regarding

the appropriateness of investing in any securities or the investment strategies discussed or recommended in this report.

The information contained herein has been obtained from sources believed to be reliable but such sources have not been indepe ndently

verified by Maybank Investment Bank Berhad and consequently no representation is made as to the accuracy or completeness of this report

by Maybank Investment Bank Berhad and it should not be relied upon as such. Accordingly, no liability can be accepted for any direct,

indirect or consequential losses or damages that may arise from the use or reliance of this report. Maybank Investment Bank Berhad, its

affiliates and related companies and their officers, directors, associates, connected parties and/or employees may from time to time have

positions or be materially interested in the securities referred to herein and may further act as market maker or may have assumed an

underwriting commitment or deal with such securities and may also perform or seek to perform investment banking services, advisory and

other services for or relating to those companies. Any information, opinions or recommendations contained herein are subject to change at

any time, without prior notice.

This report may contain forward looking statements which are often but not always identified by the use of words such as “anticipate”,

“believe”, “estimate”, “intend”, “plan”, “expect”, “forecast”, “predict” and “project” and statements that an event or result “may”, “will”, “can”,

“should”, “could” or “might” occur or be achieved and other similar expressions. Such forward looking statements are based on assumptions

made and information currently available to us and are subject to certain risks and uncertainties that could cause the actual results to differ

materially from those expressed in any forward looking statements. Readers are cautioned not to place undue relevance on these forward-

looking statements. Maybank Investment Bank Berhad expressly disclaims any obligation to update or revise any such forward looking

statements to reflect new information, events or circumstances after the date of this publication or to reflect the occurrence of unanticipated

events.

This report is prepared for the use of Maybank Investment Bank Berhad's clients and may not be reproduced, altered in any way, transmitted

to, copied or distributed to any other party in whole or in part in any form or manner without the prior express written consent of Maybank

Investment Bank Berhad and Maybank Investment Bank Berhad accepts no liability whatsoever for the actions of third parties in this respect.

This report is not directed to or intended for distribution to or use by any person or entity who is a citizen or resident of or located in any

locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

6 March 2012 of 60


APPENDIX 1

Additional Disclaimer (for purpose of distribution in Singapore)

This report has been produced as of the date hereof and the information herein maybe subject to change. Kim Eng Research Pte Ltd

("KERPL") in Singapore has no obligation to update such information for any recipient. Recipients of this report are to contact KERPL in

Singapore in respect of any matters arising from, or in connection with, this report. If the recipient of this report is not an accredited investor,

expert investor or institutional investor (as defined under Section 4A of the Singapore Securities and Futures Act), KERPL shall be legally

liable for the contents of this report, with such liability being limited to the extent (if any) as permitted by law.

As of 6 March 2012, KERPL does not have an interest in the said company/companies.

Additional Disclaimer (for purpose of distribution in the United States)

This research report prepared by Maybank Investment Bank Berhad is distributed in the United States (“US”) to Major US Institutional

Investors (as defined in Rule 15a-6 under the Securities Exchange Act of 1934, as amended) only by Kim Eng Securities USA, a broker-

dealer registered in the US (registered under Section 15 of the Securities Exchange Act of 1934, as amended).

All responsibility for the distribution of this report by Kim Eng Securities USA in the US shall be borne by Kim Eng. All resulting transactions

by a US person or entity should be effected through a registered broker-dealer in the US.

This report is for distribution only under such circumstances as may be permitted by applicable law. The securities described herein may not

be eligible for sale in all jurisdictions or to certain categories of investors. This report is not directed at you if Kim Eng Securities is prohibited

or restricted by any legislation or regulation in any jurisdiction from making it available to you. You should satisfy yourself before reading it

that Kim Eng Securities is permitted to provide research material concerning investments to you under relevant legislation and regulations.

Without prejudice to the foregoing, the reader is to note that additional disclaimers, warnings or qualifications may apply if the reader is

receiving or accessing this report in or from other than Malaysia.

As of 6 March 2012, Maybank Investment Bank Berhad and the covering analyst do not have any interest in any companies recommended

in this Market themes report.

Analyst Certification:

The views expressed in this research report accurately reflect the analyst's personal views about any and all of the subject securities or

issuers; and no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations

or views expressed in the report.

Additional Disclaimer (for purpose of distribution in the United Kingdom)

This document is being distributed by Kim Eng Securities Limited, which is authorised and regulated by the Financial Services Authority and

is for Informational Purposes only. This document is not intended for distribution to anyone defined as a Retail Client under the Financial

Services and Markets Act 2000 within the UK. Any inclusion of a third party link is for the recipients convenience only, and that the firm does

not take any responsibility for its comments or accuracy, and that access to such links is at the individuals own risk. Nothing in this report

should be considered as constituting legal, accounting or tax advice, and that for accurate guidance recipients should consult with their own

independent tax advisers.

Published / Printed by

Maybank Investment Bank Berhad (15938-H)

(A Participating Organisation of Bursa Malaysia Securities Berhad) 33rd Floor, Menara Maybank, 100 Jalan Tun Perak, 50050 Kuala Lumpur

Tel: (603) 2059 1888; Fax: (603) 2078 4194 Stockbroking Business:

Level 8, Tower C, Dataran Maybank, No.1, Jalan Maarof 59000 Kuala Lumpur

Tel: (603) 2297 8888; Fax: (603) 2282 5136

http://www.maybank-ib.com

bumi armada

Documents

su bsi diar

bank ing ber

kim eng hon

ship dimensions

international

te giac trang

enhanced oil

1mideast sw