Armada Olombendo
KUALA LUMPUR: Bumi Armada Bhd
reported lower top- and bottomlines in the first quarter of 2025 (1Q25) as there were reduced contributions from two of its floating production storage and offloading (FPSO) vessels.
In the quarter under review, Bumi Armada said net profit was RM182.77mil, down from RM240.54mil, while revenue shrank to RM473.97mil from RM635.54mil in the year-ago quarter.
The group's earnings per share slipped to 3.08 sen from 4.06 sen previously.
In a statement announcing its results, Bumi Armada said the weaker performance was primarily owing to reduced contributions from Armada Kraken FPSO. This was due to the recognition of compensation payable to the charterer in 1Q25 upon confirmation of the second annual charter extension to April 1, 2027.
Meanwhile, there was an absence of revenue from Armada Olombendo FPSO due to major maintenance works.
Bumi Armada CEO Gary Christenson maintained that Bumi Armada's performance remained positive from an operational standpoint with all active vessels perfroming well with zero lost time injury.
"We retained a significant cash balance whilst also paying down debt," he added.
However, the Armada Kraken FPSO has entered its first annual option period extension commencing on April 1 with a 70% reduction in charter rate. This is expected to lead to a significant reduction in group revenue for the year.
"In these uncertain times, we are looking to take advantage of our improved operational and financial strength by pursuing appropriate new project opportunities," said Christenson.
