Bumi Armada Q1 profit rises to RM48.42m on solid revenue

KUALA LUMPUR: Bumi Armada Bhd’s net profit increased marginally to RM48.42 million in the first quarter ended March 31 from RM48.11 million a year ago.

Revenue rose 48.5 per cent to RM600.34 million from RM404.17 million, mainly due to stronger contribution from its floating production and operation (FPO) business.

Bumi Armada said its FPO contribution to revenue in the first quarter was RM460.3 million, compared with RM293.7 million in the same quarter last year, due to higher revenue from the four new FPO projects. Its offshore marine services business, however, saw revenue decline by 14.9 per cent to RM140 million in the quarter under review compared with the same quarter last year.

“This was the result of reduced offshore support vessel utilisation (38 per cent in the first quarter this year versus 42 per cent previously) and the sub-sea construction segment seeing lower overall activity in the Lukoil project in the first quarter of this year compared with the same period last year,” it said.

Bumi Armada executive director and chief executive officer Leon Harland said it had continued to achieve safe operations and high operational uptime across its fleet of vessels.

He said the financial results for the quarter under review had been negatively influenced by Erin Petroleum Nigeria Ltd’s decision to abandon its operations in the Oyo field in Nigeria and the associated costs that the company expected to incur as result of it.

“All our other operating FPO units have contributed positively to the first-quarter revenue.”

Harland said Armada Olombendo in Angola had achieved final acceptance on May 17 and had been performing very well for its client, ENI Angola, since the first oil was produced with very high uptime and excellent safety records.

He added that the group would now recognise the full charter rate for the floating production storage and offloading.