Bumi Armada incurs RM96.71mil net loss in Q3

  • Business
  • Thursday, 24 Nov 2016

PETALING JAYA: Bumi Armada Bhd posted a net loss of RM96.71mil for the third quarter ended Sept 30, 2016 from a net profit of almost RM70mil in the same quarter a year ago, as contributions from floating production, storage and offloading (FPSO) and floating gas solutions (FGS) narrowed.

Revenue for the period fell 32.5% to RM377.51mil from RM559.46mil a year earlier, while loss per share was 1.65 sen compared with earnings per share of 1.19 sen.

The international offshore energy facilities and services provider told Bursa Malaysia that a 68.2% fall in FPSO and FGS revenue was due to completion of conversion activities on the Eni 1506 and Kraken FPSO projects, apart from lower contributions from its FPSOs Armada Claire, Armada Perdana and Armada Perkasa.

Bumi Armada was reported to be still in negotiations with its UK client EnQuests Plc on a US$65mil (RM267.57mil) refund and liquidation damages claimed by Enquests due to a delay in Armada Kraken.

The company’s offshore marine services (OMS) revenue was, however, up 34.6% year-on-year in the third quarter due to subsea construction (SC) work related to the LukOil project in the Caspian Sea.

With market cap of RM3.5bil, Bumi Armada’s total order book as at end-September stood at RM37bil, of which RM24.1bil were firm contracts and the remainder with optional extensions.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) year-to-date (YTD) was RM541.2mil, a decrease of RM313.9mil compared to YTD 2015.

“The lower EBITDA was due to reduced contributions from the FPSP and FGS segment, net allowance for doubtful debts of RM75.9mil and a one-off gain on deemed disposal of a subsidiary in 2015 of RM17.6mil,” it explained.

It added that this was partly offset by marginal increased contributions from the OMS segment and higher earnings from joint ventures from Armada Sterling, Armada Sterling II operations and Karapan Armada Sterling III’s higher conversion activities.

For the cummulative nine months, its net losses widened to RM591.61mil from RM149.49mil in the previous corresponding period, on the back of a lower revenue of RM1.21mil from RM1.59mil a year ago.

Loss per share increased to 10.08 sen from loss per share of 2.55 sen.

Meanwhile, in a separate statement, executive director and chief executive officer Leon Harland commented that the third quarter of 2016 continued to be challenging due to the uncertainty in the global front.

“The OMS business revenue improved arising from increased SC activity in the Caspian Sea. The offshore support vessel segment continues to be challenging, with rates under pressure due to low demand and oversupply of available vessels,” Harland said.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Business , Bumi Armada Bhd


Next In Business News

Tesla CEO Musk puts US$100mil jolt into quest for carbon removal
Start-ups aim to change car battery recycling including in Malaysia
Oil price steady as Libya output decline offsets risks to Asian demand
GLOBAL MARKETS - Wall St falls on capital tax increase angst
Mah Sing aims to be among Top 5
EU eyes ‘re-engineering’ of global finance with green standards
Petronas Chemicals sees increased income
Aerospace industry to rebound next year
Vitrox Q1 net profit rises to RM31mil
Nazir Razak is Bank Pembangunan chairman

Stories You'll Enjoy