KUALA LUMPUR: Bumi Armada Bhd posted net profit of RM58.51mil in the financial year ended Dec 31,2019 which was in contrast with net losses of RM2.30bil in FY18.
The international offshore energy facilities and services provider announced to Bursa Malaysia on Thursday its revenue, however, fell to RM2.07bil from RM2.42bil.
However, in the fourth quarter, it narrowed its net losses to RM235.16mil conpared with RM1.26bil a year ago.
It attributed the 4QFY19 net losses was due mainly to an impairment of RM233.6mil in the floating production and offloading (FPO) business.
Bumi Armada said this related to the accrued lease rental following the judgment delivered by the Supreme Court on Jan 24,2020 in favour of Woodside Energy Julimar Pty Ltd. After reviewing the judgment, the group will file an appeal against the decision of the Supreme Court
Its revenue declined to RM515.64mil from RM576.31mil. Loss per share were four sen compared with 21.51 sen a year ago.
“Underlying FPO business remained stable during the quarter, accounting for 81.4% of total revenue during the fourth quarter of 2019, ” it said.
Bumi Armada said the group’s firm orderbook at the end of the 4Q, 2019 was about RM17.5bil, with additional optional extensions of up to RM9.8bil.
Commenting on the results, Bumi Armada CEO Gary Christenson said the group delivered another quarter of safe operations resulting in a lost-time injury (LTI) free year in 2019.
The FPO fleet continued to deliver stable operations in 2019, with Armada Kraken improving over the year.
Did you find this article insightful?