The slowdown in the oil and gas sector continues, with Bumi Armada widening its second quarter net loss to MYR518.3m ($128.1m) from being MYR291.5m in the red in the previous corresponding quarter.
Revenues in the second quarter fell to MYR402.9m from MYR459.1, previously.
Bumi Armada said in a stock market announcement that this was mainly due to lower floating production, FPSO and floating gas solutions (FGS) contributions. The company noted that FPSO and FGS revenue contributions declined due to loss of revenue from Armada Claire, lower conversion activities as new projects near completion and lower contribution from Armada Perkasa.
The group’s total orderbook as at end-June 2016 stood at MYR37.1bn, of which MYR24.5bn are firm contracts and MYR12.6bn, optional extensions.
For the first half, Bumi Armada saw its net loss almost double to MYR494.9m from a net loss of MYR219.5m in the previous corresponding period, while revenue dropped to MYR833.6m from MYR1.03bn previously.
Bumi Armada ceo and ed Leon Harland noted that the current climate of relatively lower oil prices continued to challenge the industry.
The company was impacted by the loss of earnings from Armada Claire, challenges in attaining regular payments from its FPSO clients in Nigeria and continued weak demand for OSV services.
“In addition, we have taken non-cash impairments, predominantly on the Armada Claire, which pushed the results to a net loss. This non-cash impairment does not in any way change our position that the termination of the contract was unlawful and we will continue to pursue our claim for damages,” the company said.
“We believe that the underlying fundamentals of the group remain positive. We are well advanced in the completion of our four new FPSO/FGS projects. Once operational, these projects will provide a step-change in the group’s financial results from 2017 onwards.”
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