Bumi Armada posts RM16.59 million net profit in Q2

PETALING JAYA: Bumi Armada Bhd returned to the black registering a net profit of RM116.59 million for the second quarter ended June 30, 2017 against a net loss of RM518.32 million in the previous corresponding period, underpinned by stronger contributions from both the floating production and operation (FPO) and offshore marine services (OMS) segments.

Its revenue soared 72.4% from RM402.87 million to RM694.42 million.

The offshore energy facilities and services provider said in a filing with the stock exchange that its firm orderbook at the end of the second quarter of 2017 was about RM23.7 billion, with additional optional extensions of up to RM13.3 billion.

Bumi Armada noted that it had a full quarter of contributions from both the Armada LNG Mediterrana FSU and the Armada Olombendo FPSO in Malta and Angola, respectively.

"We also saw revenue starting for the Armada Kraken FPSO in UK towards the end of the second quarter. With Karapan Armada Sterling III FPSO in Indonesia having passed its 72-hour test since the end of Q2 2017 and starting to contribute as well, we will further improve the income streams for the group in the second half of 2017 and will complete a challenging, but progressive transformation year in our FPO business unit.

"We will bid for new FPO projects and have been progressing our efforts on selected tenders, and we expect to see decisions over the course of 2018," it noted.

Nonetheless, Bumi Armada said it is cautious in the short-term as oil prices remain at depressed level.

"We believe this is likely to delay the recovery in new exploration activities, which in turn, will negatively impact the OMS business. With the completion of the four major conversion projects in 2017, we expect revenue to improve for the remaining period of the financial year," it explained.

For the first half of the year, Bumi Armada reported a net profit of RM164.7 million versus a net loss of RM494.89 million in the same period last year. This was on the back of a 31.8% rise in revenue from RM833.64 million to RM1.1 billion.

At noon break, the stock rose half a sen to 73 sen on some 1.14 million shares done, giving it a market capitalisation of RM4.28 billion.