Maybank IB assessed Bumi Armada on its ESG score and has given it 58 (out of 100), making the ESG rating above
average. The house said the company has good disclosures but that more can be done in regards to its policies towards meeting its ESG goals.
Maybank IB said it strongly believes that BArmada can improve in the following aspects NOx emission; SOx emission; and implementing ways to introduce renewable energy into its source of energy mix. However, it did highlight that the shipping group has shown decent improvement over the years in number of spills released to sea; electricity consumption intensity; GHG intensity; the composition of women in senior management; and the number of training hours per employee.
Good qualitative scoring and targets.
Although BArmada does not follow the Task Force on Climate-Related Financial Disclosures framework for ESG reporting, there are proper ESG policies in place – and, they are led by a standalone sustainability committee. It has established an ESG framework, aligned with the relevant UNSDG Sustainability Development Goals 2030. The group goes the extra mile and makes sure that water is treated before being released back to sea. The group uses more carbon-friendly
machineries to reduce its carbon emissions. All the vessels that produces waste are ensured to have been managed responsibly and is managed in compliance with the requirements under MARPOL. Also, it has pledged its Net Zero Carbon Emission target by 2050.
Expecting record high core net profit in FY24E
With Kraken back to status quo operations and expectations of BBC recognition for its 30%-owned Armada Sterling V FPSO beginning Apr 2024, the house forecasts a record-high core net profit of MYR853m in FY24E, which translates into a strong 29% YoY growth.
