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KUALA LUMPUR: Bumi Armada Bhd
continued to see a turnaround in its financial performance with earnings of RM123.73mil in the third quarter ended Sept 30, 2017 with greater earnings visibility as order book rose to RM22.7bil.
The international offshore energy facilities and services provider reported on Thursday this in sharp contrast with a year ago when it posted net losses of RM96.71mil.
Its revenue jumped 70% to RM641.39mil from RM377.51mil. Earnings per share were 2.11 sen from loss per share was 1.65 sen.
Bumi Armada said earnings before interest, tax, depreciation and amortisation (Ebitda) for the third quarter of 2017 was RM466.9mil comparedwith RM91mil a year ago.
Firm orderbook at the end of the Q3, 2017 was about RM22.7bil, with additional optional extensions of up to RM13.1bil.
Commenting on the results, it said the Q3, 2017 revenue was down 7.6% from a year ago.
The floating production and offloading business registered revenue of RM402.7mil in Q3, 2017, which was a 19.3% increase over Q2, 201. It performed better when comapred with a year ago, an increase of 247.2%.
Offshore marine services business revenue fell by 33.1% to RM238.7mil over Q2, 2017 and was 8.7% lower than a yerar ago.
The Q3 2017 Ebitda increased to RM466.9mil from RM428.2mil in Q2 2017, due to stronger contributions from the floating production & operation (FPO) business as well as a substantial increase in share of results from joint ventures.
Executive director and CEO Leon Harland said in Q3, 2017 there was an increase in revenue from the FPO business, against the previous quarter, as the delivery of the new projects continued to yield improving contributions.
“We continued to see strong safety and uptime performances across all our operating units during the quarter.
“In Angola and the North Sea, we continue to work towards completing commissioning works. The Armada Olombendo FPSO has been steadily producing near its nameplate capacity and the Armada Kraken FPSO has been increasing and stabilising production since first oil.
“The Kraken project remains challenging as a complicated heavy oil field, requiring a complex FPSO that injects extremely high volumes of treated water to lift the oil and chemicals to assist in the onboard separation of the oil.
“The contributions from the joint ventures were strong in the third quarter as we started receiving contributions from Karapan Armada Sterling III. We also disposed of the Armada Intrepid during the quarter, which boosted our income.
“Within the OMS business unit, the OSV utilisation improved slightly during the quarter, but rates remained soft. Vessel activity in the fourth quarter is expected to decline due to the monsoon season in South East Asia and the winter in the Caspian,” it said.
For the nine months ended Sept 30, 2017, its earnings were at RM288.43mil – a stark contrast with net losses of RM591.61mil in the previous corresponding period. Revenue climbed by 43.7% to RM1.74bil from RM1.21bil a year ago.
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