Bumi Armada loss widens in Q4 on non-cash impairment

PETALING JAYA: Offshore energy and facilities provider Bumi Armada Bhd registered a wider loss of RM1.29 billion in the fourth quarter ended Dec 31, 2016 (Q4FY16) after taking a non-cash impairment of RM1.1 billion on several assets. The group recorded a net loss of RM85 million in Q4FY15.
Revenue for the quarter was RM205.453 million, 65% lower than the RM589.042 million in the same quarter of the preceding year.
“The lower revenue stems from the fact that our four new projects, each complex and innovative in their own right, have left the conversion yard and are progressing to be put into production,” Bumi Armada executive director and CEO Leon Harland said in a statement yesterday.
“Additionally, compared to last year we have reduced incomes from Armada Claire and our Nigerian FPSOs (floating production storage and offloading vessels) as well and the OMS (offshore marine services) business continues to struggle with low demand due to continued weak activity and seasonal slowdowns, which also added to the substantial reduction of revenues inQ4 2016,” he added.
Nonetheless, the group is expecting a strong increase in cash flow and positive core earnings for 2017, as well as growing number of new project opportunities.
According to Harland, the group has generated RM1 billion in net cash flows for the whole year despite the circumstances.
Bumi Armada made a net loss of RM1.88 billion for FY16, slumping further from the loss of RM234.5 million it in 2015. Revenue fell 35% to RM1.41 billion from RM2.17 billion.