THE prospect for Bumi Armada Bhd will remain steady backed by its huge RM21.8 billion orderbook which offers earnings visibility for the next three years, said JF Apex Securities Bhd.
However, the research firm said Bumi Armada would face challenges to replenish its orderbook due to the cautious sentiment and potential lower capital expenditure (capex) in oil and gas industry.
The international offshore oilfield services provider has an orderbook of RM11.8 billion of potential extension, excluding the RM3.76 billion Madura FPSO (floating, production, storage and offloading) contract.
Bumi Armada yesterday posted a lower third quarter net profit of RM108.09 million, from RM121.24 million in the same quarter last year.
Its revenue, however, rose to RM636.51 million from RM546.30 million a year ago.
JF Apex has maintained a buy call on Bumi Armada with target price of RM1.91.