Bumi Armada trades higher with RM200m contract in hand
KUALA LUMPUR, May 8 — Bumi Armada Bhd's share price traded higher in the early session today after its unit, Bumi Armada Navigation Sdn Bhd, won a five-year contract for its DP2 accommodation workboat, Armada Firman 3 yesterday.
The contract is estimated to be worth RM200 million.
As at 10.13 am today, its share price rose six sen to RM4.06 after opening two sen better at RM4.02.
Bumi Armada entered into an agreement with Technologias Relacionadas con Energia y Servicios Especializados S.A de C.V (TRESE) for the Armada Firman 3, which would provide accommodation and offshore services to support oil field activities in Mexican territorial waters.
The contract comes with an option for an extension of a further five years.
HwangDBS Vickers Research recommended a "buy" call for Bumi Armada with a price target of RM5.20.