PETALING JAYA: The loss of its claims against Australia’s oil firm Woodside Energy Julimar Pty Ltd (WEJ) will unlikely have a material impact on the financial position of BUMI ARMADA BHD
.
According to AllianceDBS Research, Bumi Armada has reasonable grounds to appeal against the decision of the Australian Supreme Court, which had ruled in favour of WEJ over a contract to provide floating production storage and offloading services on Sept 30,2011.
The brokerage maintained its “buy” rating on Bumi Armanda, with a target price of 75 sen based on 13.8 times estimated earnings for the financial year ending Dec 31,2020. The target price implied a price-to-book value of 1.2 times. “We believe that the worst for Bumi Armada is over. The company has resolved its debt issues and is improving its operations progressively as seen in nine months ended September 2019 figures, ” AllianceDBS Research explained.
...