PETALING JAYA: Shares in Bumi Armada Bhd rebounded from a record low after the company said it would be selective in pursuing new projects.
The company also hoped to complete its refinancing efforts by the end of the first quarter of next year.
The stock rose 3.5 sen, or 22% to close at 19.5 sen with 318 million shares traded.
The company, in a reply to a exchange’s query yesterday, said its chief executive officer had issued an internal memo to employees last Tuesday stating that the company has not made substantial progress with the financial parties involved.
This has resulted in the company being forced to reduce its cash outflow and limit efforts to pursue new jobs.
This was despite Bumi Armada’s efforts to improve the company’s financial situation.
“In that regard, the company wishes to clarify that the aforesaid statement was meant to highlight to the employees the challenging market and financial circumstances faced by the oil and gas sector and Bumi Armada.
“As a result, the group has to be highly selective in the projects which it is pursuing while discussions with financial parties are ongoing.
“The company wishes to further clarify that it is currently in active negotiations with the financiers, and target to complete the refinancing by the end of the first quarter of 2019,” it said.
In its third quarterly report for the period ended Sept 30, Bumi Armada had announced that it was focusing on strengthening its overall balance sheet and was working with lenders to put in place a refinancing of the group’s US$500mil debt.
On Nov 23, it announced that it had posted net losses of RM502.82mil in the third quarter due to non-cash impairments totaling RM563.5mil.
If not for the non-cash impairments of RM41.4mil for the floating production and production and RM522.1mil for the offshore mairne services businesses, Bumi Armada would have made a net profit of RM75.2mil.
The non-cash impairments saw it posted the net loss of RM502.82mil compared with a net profit of RM123.73mil a year ago.
Bumi Armada’s revenue fell by 8.3% to RM588.04mil from RM641.39mil a year ago.