What were the highlights of Bumi Armada’s recently released Q1 2012 results?

BASMA: Our EBITDA shot up to 68% and net profit is up by 9-10%, though the turnover was lower. So, that shows that the type of business mix we’re in is more profitable. If you look at it compared to 2011, it’s higher. We're quite pleased with the first quarter of a full year.

What are the company's growth and development plans going forward?

BASMA: Basically, our business model is divided into four segments. The FPSOs (Floating Production Storage Offloading) are the backbone of the company and so we focus more on the FPSOs. With regards to our fleet, the OSVs (Offshore Supply Vessels) are at 93% utilization. We'll be buying many more vessels. Indeed, we announced four new purchases in the last couple of weeks, so you'll probably hear more of the same: more buying and more building of these vessels. This is because we're basically at capacity. On the installation side, we announced a large job in Russia and we believe there will be more to come. Of course, there’s also the new segment, the oil-field services that we're tendering in Malaysia; we've got four prospects and hopefully one of them will come through. In general, the industry's quite bullish, as you know. Investment is up; and the scramble for oil reserves is getting hotter all the time. The environment we're in is quite positive, not withstanding the issues in Europe of course. The sovereign debt is a big cloud over everybody's head. We will surely keep an eye on that situation.

How will the large job announced in Russia impact Bumi Armada’s bottom line?

BASMA: The Caspian is a lake. There are only two derrick lay barges, one of which is owned by the Azeris, and we own the other. So, theoretically I've got access to 50% of the market and I expect to get more. The contract value that was announced was more than $200m and we've since gotten more variations, so it's increasing as we speak. We do mainly the procurement and the installation with these vessels. I believe it is a total of about 90km per pipe. This will be over two installation seasons. It will add directly to the bottom line for this year. It will have a positive impact this year.

Apart from the Caspian, what other areas are you focusing on for offshore?

BASMA: Africa is the big focus for us now. You know, everybody talks about Latin America and of course Asia, but the silent revolution is taking place in Africa and we are there; we are well established. We know how to work in Africa. We've been successful in difficult places like Nigeria, for example. So we believe we are well positioned to take advantage of the African revolution. Take a look at Mozambique, or take a look at Kenya or Angola; there's a great deal of excitement happening in these locations and it doesn’t seem to be everybody's cup of tea, but it is for Bumi Armada and we are quite keen to continue our pursuit in the region.

What are the growth opportunities in the Malaysian market and Asia-Pacific?

BASMA: Asia-Pacific is quite competitive. There are many newcomers on the scene and it's one of the fastest growing regions. There's a great deal of investment and a young, dynamic workforce. It's a great place to be, but it is also a highly competitive place. So we see opportunities but we need to be more selective because we don't want to compete on price; we want to compete on competency and differentiate ourselves. With regards to Malaysia, I think it's great. I think if you compare it to the rest of the region and the world, we've got a stable government, a growing economy, and an educated workforce. Malaysia is cost-effective and an attractive place to live because you can afford to build an explosive mixture of foreign and local talent. In Malaysia, it's more the brownfields and the marginal fields; it’s currently about chasing the last drop of oil. It's also quite exciting because it's technology based. You need technology to be successful. We feel that Bumi Armada is well positioned because we are architects of technology.

What makes Bumi Armada a good investment opportunity?

BASMA: Well, the attractiveness of Bumi Armada today is actually reflected in the positive outlook that many analysts worldwide have projected for the company. Further, we are the largest by market cap in the segment. The reason for that is our delivery model and our business model. Our delivery model is quite reliable. We are able to deliver major projects without destroying value and that differentiates us from the pack. Secondly, our business model includes the FPSOs, OSVs and the T&I (Transport and Installation), which provides for a blended EBITDA that is amongst the highest in the world. This is true in comparison with the likes other big global players in the segment. If you combine those factors, we're right there in the top 3-5 with a blended EBITDA. The EBITDA is on average more than 50%, which is quite attractive. So, if you are looking for an investment, I think you’ve got the best of both worlds in Bumi Armada.