Bumi Armada posts RM153.37mil net profit in third quarter

PETALING JAYA: International offshore energy facilities and services provider BUMI ARMADA BHD posted a net profit of RM153.37mil for the third quarter of financial year ending Dec 31, 2019 (FY19), compared with a net loss of RM502.82mil a year ago.

According to a filing with Bursa Malaysia, the third quarter net profit was 96.2% over the second quarter’s net profit of RM78.2mil, boosted by RM81.8mil from other operating income.

The operating income included a gain on disposal of joint ventures and property, plant and equipment including Armada Perdana.

There was also a higher share from joint ventures arising from tax exemptions obtained for floating production, storage and offloading (FPSO) Armada Sterling and FPSO Armada Sterling II during the third quarter.

Revenue for the third quarter amounted to RM527.8mil, mainly due to contribution from its floating production and offloading (FPO) business. The FPO business generated a revenue of RM453.9mil with the increase over the second quarter of 2019 coming from higher contributions from Armada Kraken FPSO.

For the nine months of FY19, Bumi Armada staged a turnaround with a net profit of RM293.79mil compared to a net loss of RM1.04bil in the previous corresponding period. This was despite a 15.5% dip in revenue to RM1.55bil.

In a statement, Bumi Armada executive director and CEO Gary Christenson said: “In the third quarter of FY19, our FPO business was stable, registering a 2.3% improvement in revenue over the second quarter.

“In the offshore marine services (OMS) business, we disposed of five more offshore support vessels (OSVs) in the third quarter and we continue to pursue new contracts for our two sub-sea construction (SC) vessels in the Caspian Sea,” he said.

Christenson added that the group would continue to focus on safety, the selling of selected assets, as well as improvements in overall operational performance and financial efficiencies.

Source: TheStar