Bumi Armada posts lower net profit of RM40.11mil in 1Q


KUALA LUMPUR: While acknowledging a challenging first quarter, Bumi Armada Bhd's newly hired chief operating officer, Alexander Brigden, said the company will be actively bidding for new projects amid an improving financial position.

He noted this will take place in "buoyant" market conditions, which are presenting the company with good opportunities.

In a filing with the stock exchange, Bumi Armada reported a net profit of RM40.11mil in the first quarter ended March 31, 2026, a sharp decline from RM182.77mil in the same quarter in 2025.

Quarterly revenue had dropped to RM306.56mil, representing a decrease of RM167.4mil compared to the previous comparative quarter.

According to the company's filing, operations segment revenue decreased mainly due to lower revenue from Armada Kraken FPSO following the commencement of annual option period charter in April 2025 with a lower charter rate as well as lower finance lease revenue from Armada Olombendo FPSO. 

It added that finance lease revenue during the quarter decreased due to the accounting treatment of finance leases, where revenue declines over time despite stable charter payments.

"Operationally the start of the year has been challenging with downtime impacting our results. Lessons learned have been shared across the fleet and I am confident we will continue to improve our operational performance," said Brigden in a press statement.

He noted also that Bumi Armada recorded zero lost time injuries (LTI) during the first quarter of the year.

In the same statement, Luke Targett, chief financial officer of Bumi Armada, said net cash flow from operating activities was significantly higher than reported profit. He highlighted

the company has prepaid its unsecured corporate debt so that the next principal repayment wasn’t due until December 2027.

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