Bumi Armada’s Q1 net profit more than doubled

Bumi Armada hit with $247m impairment on OSV fleet value

Bumi Armada got off to a good start with its net profit in the first quarter ended March 31 improving to RM48.1mil, from RM23.4mil achieved in the same corresponding period last year.

Revenue for the international offshore energy facilities and services provider, however, came in 6.2% lower year-on-year (y-o-y) to RM404.2mil in the quarter.

At the floating production and operation (FPO) business segment level, revenues increased by 10.7% y-o-y, mainly from initial revenue streams relating to first oil and first gas on Armada Olombendo and Armada LNG Mediterrana respectively. However, the offshore marine services (OMS) segment saw a decline in revenue of 23.2%, due to a lower utilisation of the offshore support vessel fleet.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) in the quarter declined slightly to RM248.4mil compared with RM251.5mil in the same period a year ago, mainly due to lower contributions from the OMS segment. The group’s EBITDA margin increased to 61% during the quarter from 58% in the same period previously.

In a statement accompanying the financial results, executive director and chief executive officer Leon Harland said that the first quarter performance reflects the transition phase of the company and marked a recovery despite the continuing challenges in the market.

He said the group has returned to profit after the RM1.39bil losses recorded in the last quarter of 2016. “In the first quarter of 2017, we started operations on both the Armada LNG Mediterrana FSU and the Armada Olombendo FPSO in Malta and Angola, respectively. We have also recently received first gas on the Karapan Armada Sterling III in Indonesia and we hope to soon deliver first oil on Armada Kraken in the UK sector of the North Sea. Full charter income from all these projects will result in a significant improvement in revenue streams for the Group throughout 2017.” Shares of Bumi Armada closed three sen up to 77.5 sen on Wednesday.