Bumi Ar­mada in the red for Q3

The Sun (Malaysia) - - SUNBIZ -

KUALA LUMPUR: Off­shore en­ergy fa­cil­i­ties and ser­vices provider Bumi Ar­mada Bhd saw a net loss of RM96.71 mil­lion for the third quar­ter ended Sept 30, 2016 com­pared with a net profit of RM70 mil­lion a year ago, as a re­sult of lower con­tri­bu­tions across busi­ness units as well as pro­vi­sions for doubt­ful debts of RM79.6 mil­lion.

Rev­enue for Q3 was RM377.5 mil­lion, 32.5% lower than the cor­re­spond­ing quar­ter in 2015, mainly due to a 68.2% fall in float­ing pro­duc­tion stor­age of­fload­ing sys­tem (FPSO) and float­ing gas so­lu­tions (FGS) rev­enue on the back of com­ple­tion of con­ver­sion ac­tiv­i­ties on the Eni 1506 and Kraken FPSO projects and re­duced con­tri­bu­tions from Ar­mada Claire, Ar­mada Per­dana and Ar­mada Perkasa.

For the nine months pe­riod, the group’s net loss widened to RM591.61 mil­lion against a net loss of RM149.49 mil­lion a year ago due to re­duced con­tri­bu­tions from the FPSO & FGS seg­ment, net al­lowance for doubt­ful debts of RM75.9 mil­lion and a one-off gain on deemed dis­posal of a sub­sidiary in the nine months of 2015, of RM17.6 mil­lion.

Its rev­enue de­creased 24% to RM1.21 bil­lion com­pared to RM1.59 bil­lion in the fi­nan­cial pe­riod up to Sept 30, 2015 mainly at­trib­uted to lower con­ver­sion ac­tiv­i­ties from the Eni 1506 and Kraken FPSO projects as these projects are near com­ple­tion, re­duced con­tri­bu­tion from Ar­mada Claire, Ar­mada Per­dana, Ar­mada Perkasa and off­shore sup­port ves­sels (OSV) due to lower ves­sel util­i­sa­tion.

Com­ment­ing on the Q3 fi­nan­cial re­sults, Bumi Ar­mada ex­ec­u­tive di­rec­tor and CEO Leon Har­land said the third quar­ter of 2016 con­tin­ued to be chal­leng­ing as the out­look for global growth, as well as geopo­lit­i­cal un­cer­tainty, con­tin­ued to un­der­mine oil prices, which in turn lim­ited new ac­tiv­i­ties by oil com­pa­nies.

He said the off­shore marine ser­vices (OMS) busi­ness rev­enue im­proved aris­ing from in­creased sub­sea con­struc­tion ac­tiv­ity in the Caspian Sea. The OSV seg­ment con­tin­ues to be chal­leng­ing, with rates un­der pres­sure due to the low de­mand and over sup­ply of avail­able ves­sels.

“While we have re­ported lower rev­enue from our FPSO and FGS seg­ment in the third quar­ter of 2016 as projects com­pleted their con­ver­sion ac­tiv­i­ties, the pos­i­tive is that these projects are now mov­ing to­wards their op­er­a­tional lo­ca­tions.” The Ar­mada LNG Medit­er­anna, Ar­mada Olombendo and Ar­mada Kraken have all been mo­bilised for their re­spec­tive op­er­a­tional lo­ca­tions in Malta, An­gola and the North Sea.

“We now en­ter the hook-up and com­mis­sion­ing stages to bring these new units on-line in 2017, when they will start to gen­er­ate steady cash flow go­ing for­ward.

“On a pos­i­tive note, we have seen an im­prove­ment in FPSO pro­ject ten­der­ing and pre-qual­i­fi­ca­tion ac­tiv­i­ties as oil com­pa­nies start to look at bring­ing se­lected new fields into pro­duc­tion,” Har­land said in a state­ment.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.