KUALA LUMPUR: Bumi Armada Bhd's net profit fell by 44% to RM85.62mil in the third quarter ended Sept 30 due to lower operating profit and impairments compared with net profit of RM153.37mil a year ago.
The offshore energy facilities and services provider said on Thursday operating profit before impairment fell by 11% to RM222.05mil compared with RM248.64mil a year ago.
Bumi Armada said the lower profit was due to higher depreciation arising from revision of vessels’ useful lives and residual values in 2020, and gain on disposal of joint ventures and property, plant and equipment (including Armada Perdana) a year ago.
During the quarter, it provided for an impairment totalling RM16.15mil. Share of results of joint ventures and association reported a loss of RM462,000 compared with a gain of RM54.75mil a year ago.
Bumi Armada's revenue increased by 6.9% to RM564.43mil from RM527.81mil. Its earnings per share were 1.46 sen compared with 2.61 sen.
It also said its net profit was lower in 3Q when compared with the RM119.80mil in the second quarter ended June 30 mainly due to lower revenue earned during the quarter.
Its floating production and operations (FPO) business reported revenue of RM470.5mil in 3Q, decline from 2Q due to lower vessel availability for Armada Kraken FPSO arising from a planned shutdown in September.
Revenue from the offshore marine services business marginally improved in 3Q due to higher offshore support vessels (OSV) utilisation.
Operating profit before impairment remained solid although declined to RM222.1 million in 3Q 2020 when compared to RM246.6mil in 2Q, reflecting the reduced revenue earned.
However, in the nine months, it made a net loss of RM18.57mil compared with net profit of RM293.79mil in the previous corresponding period mainly due to impairment on vessels recognised this year.
Its revenue increased by 10.8% to RM1.72bil from RM1.55bil. It said revenue from the FPO segment increased due to improved vessel availability for Armada Kraken FPSO, while revenue from the offshore marine services OMS segment increased due to improved OSV vessel utilisation from 49% in YTD 2019 to 56% in YTD 2020.
Bumi Armada said its future firm orderbook at the end of 3Q was about RM17.20bil, with additional optional extensions of up to RM10bil.
Bumi Armada CEO Gary Christenson said its joint-venture company, Armada D1 Pte Ltd, received a notification of award from ONGC for a new bareboat charter lease for the Armada Sterling FPSO off the west coast of India.
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