Bumi Armada net profit fall 12%

PETALING JAYA: Bumi Armada Bhd's second quarter net profit fell 12.1% to RM98.4 million from RM111.9 million a year ago.
Its revenue rose 222.6% to RM590.1 million from RM481.2 million a year ago while earnings per share stood at 2.35 sen from 3.82 sen a year ago from increased activities across its three established business segments.
For its six months 2014, its net profit fell 26.4% to RM163.15 million from RM221.6 million a year ago in line with its earnings before interest, taxes, depreciation, and amortization (EBITDA) after accounting for higher depreciation by RM33 million.
Revenue rose was up 9.2% to RM1.06 billion from RM969.9 million a year ago from increased activities in its Floating Production Storage Offloading (FSPO) system, Offshore Support Vessel (OSV),Transport and Installation (T&I) and Oilfield Services (OFS) segments.
In a Bursa Malaysia filing yesterday, EBITDA fell to RM485.8 million for the current year to date from RM498.26 million.
It said that the increased FPSO contribution driven by the new contract awards was offset by lower year-on-year contribution from T&I reflecting last quarter's impact of weather on the Lukoil project in Russia and lower utilisation for Armada Hawk before their activity picked up this quarter.
The OSV's contribution reflected lower utilisation of older vessels. However, the OSV has commenced fleet renewal programme which it expects to complete by the year end.
Bumi Armada said that certain Class B vessels have been identified and classified as held for sale in the current quarter.
The OFS activity continues to contribute positively to earnings this quarter.
Commenting on its results, executive director and CEO hassan Basma said at an operational level the group continues to deliver high uptime levels of over 99% across our operating FPSOs.
"Bumi Armada is expected to be fully capitalised and ready for more growth once the rights issue, for which general meeting approval was obtained in July this year, is completed. This will significantly increase Bumi Armada's funding capacity to take on more projects thus ensuring continued growth across all our business units," he said.
The group has also began to recognise revenue from large contracts, such as the FPSO for Block 15/06 in Angola and the Kraken FPSO in the North Sea, as well as additional vessels to the OSV fleet.
The firm order book continues to grow and currently stands at RM21.7 billion, a 63.2% increase compared to RM13.3 billion in Q1 2014, bringing the total order book to RM33.3 billion (comprising RM21.7 billion of firm contracts and RM11.6 billion of optional extensions) with the inclusion of the ENI Block 15/06 FPSO award.