Bumi Armada posts 3Q earnings jump to RM153.41mil

KUALA LUMPUR: Bumi Armada Bhd’s net profit jumped 79.2% to RM153.41mil in the third quarter ended Sept 30 (3Q21), from RM85.61mil a year ago.

The group generated revenue of RM545.7mil for the quarter ended Sept 30, a decrease of RM69.9mil compared to the quarter ended June 30.

Bumi Armada said the decrease from the floating production and operations (FPO) segment was mainly due to lower vessel availability arising from an unplanned shutdown of one of the two trains at Armada Kraken FPSO, while the decrease in revenue from the offshore marine services (OMS) segment was mainly due to fewer operating OSVs as a result of vessel sales.

Its operating profit before impairment came in at RM244.5mil in 3Q21, compared to RM279.2mil in 2Q21.

In the first nine months to Sept 30, Bumi Armada posted a net profit of RM456mil on revenue of RM1.72bil.

Bumi Armada, in a statement, said four OSVs were sold during the quarter in line with the group’s asset monetisation initiatives with respect to the OMS segment.

“The group recognised a gain on sale of RM5.8mil in respect of these sales and an impairment of RM6.2mil in relation to certain remaining vessels,” it said.

The group’s orderbook remained strong at RM14.6bil as at end 3Q21, with additional optional extensions of up to RM9.6bil.

Commenting on the results, chief executive officer Gary Christenson said: "Our focus on operational excellence and cost efficiencies underpinned the solid financial performance in the third quarter of 2021.”

“This has enabled us to continue to reduce our debt and improve our balance sheet. We will continue to focus on safety, sustainability, operational excellence, and financial discipline,” he said.

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