In a filing with Bursa Malaysia yesterday, Bumi Armada said that on April 11, BASPL had received a notice from EPNL, among others, advising of a purported
KUALA LUMPUR: Bumi Armada Bhd
returned to profitability in the fourth quarter ended Dec 31, 2017, recording RM63.8mil in net profit compared with a net loss of RM1.37bil a year ago.
The offshore energy facilities and services provider’s results was impacted by non-cash impairment charges for multipurpose construction vessels last year.
In the fourth quarter, Bumi Armada’s revenue also surged to RM662.1mil from RM106.2mil in the same period last year.
For the full financial year ended Dec 31, 2017 (FY16), Bumi Armada’s revenue increase by 82.3% to RM2.4bil from RM1.3bil in FY16 mainly due to higher revenue from the floating production and operation (FPO) projects, business, which increased by 263.5% in FY 2017.
The increase in the FPO revenues was mainly due to stronger contributions from the four new FPO projects delivered over the course of the year.
The offshore marine services (OMS) business saw a 5.0% increase in revenues in FY 2017 over FY 2016. The offshore support vessel (OSV) segment remained challenged with high supply and low demand for vessels, which put pressure on charter rates.
The SC segment in FY 2017, saw stronger contributions on the back of additional work scope awarded during the year in relation to the LukOil contract in the Caspian Sea.
For FY17, Bumi Armada posted a net profit of RM352.2mil, which is a significant improvement from the net loss of RM1.96bil in FY 2016, incurred on the back of non-cash impairment charges taken during that year.
Commenting on the results, Bumi Armada executive director and CEO Leon Harland said: “As I have highlighted previously, 2017 was a transition year for the group, as we delivered four new FPO projects, and this is reflected by these results.”
He said the OSV business would remain challenged, as it did not expect any major changes to the demand/supply situation in 2018. The SC unit has planned activity in
Turkmenistan and Russia over the year, and we are actively discussing further work scope for subsequent years.
“The group’s results were further improved by the various internal rationalisation activities that have been introduced to streamline our organisational processes, as well as by the prioritisation of activities within the business units,” he added.
“For 2018, we expect the Ccompany to move into a more stable phase, with all the current FPO and OMS activities to remain fairly consistent. We remain focused on building a robust business model and we want to complete our internal rationalisation activities and improve our balance sheet structure.
“We also look for growth and explore new projects that we feel suit Bumi Armada from a strategic position, as well as balance the appropriate rewards with the risks involved,” Harland said.
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