Bumi Armada incurs net loss of RM502.83 mln in 3Q

KUALA LUMPUR: Bumi Armada Bhd posted a net loss of RM502.83 million in the third quarter ended Sept 30, 2018 (Q3) compared with a net profit of RM123.73 million recorded in the same period last year.

Revenue slid to RM588.05 million from RM641.39 million, the company said in a filing to Bursa Malaysia.

“Revenue contribution from the floating, production and operation (FPO) business decreased due to lower revenue from Armada Te Giac Triang floating production storage and offloading after signing the extension agreement and higher revenue from a oneoff variation-order for Armada Olombendo FPSO, which was recognised in Q2 2018.

“The offshore marine services (OMS) revenue decreased mainly due to a lower contribution from Armada Installer following completion of work in Turkmenistan in Q2 2018,” it said.

The oilfield services company posted basic loss per share was 8.56 sen compared with basic earnings per share 2.11 before.

For the FPO business, the company said it had completed the Final Acceptance of the Armada Kraken FPSO and the group is looking to continue improving operations at its existing units.

For the OMS business, the activity in the offshore support vessel (OSV) segment remains weak.

The group has reassessed its strategy in respect of the OSV segment and is in the process of implementing revised plans.

“We are currently focusing on optimising our cost structure and looking to strengthen our balance sheet via monetisation of underutilised assets and generating sustainable cash flow,” it said. — Bernama