Bumi Armada Posts 41% Decline in Net Profit for 1Q 2014 to $20M

Malaysia's Bumi Armada Berhad, an international offshore oilfield services provider, revealed that its net profit declined 40.9 percent to $20.19 million (MYR 64.8 million) in the first quarter of 2014 (1Q 2014), while revenue fell around 4 percent to $146.01 million (MYR 468.9 million) in the same period, the company said in a release on its financial results.

The company pointed out that cashflow from operations increased by 122 percent year-on-year to $23.06 million (MYR 74 million) due to improved working capital management and improvement in business performance. Net profit for the first quarter was affected by lower contributions from the Transport and Installation (T&I) business due to seasonality and lower Offshore Support Vessel (OSV) utilization in the older vessels categories.

“As we work across the globe, fluctuations in utilizations due to weather are to be expected. Today the construction fleet is back at optimum utilization which will lead to improved results going forward,” Basma commented on the issue of seasonality.

"Work on C7 and Kraken projects is progressing well and in accordance with plans. The addition of our second large FPSO project for ENI Block 15/06 in Angola underscores Bumi Armada’s successful move from small to large FPSOs as we go further, deeper and harsher,” CEO Hassan Basma said in comments on the results.

Bumi Armada is pursuing attractive prospects along the Atlantic corridor in regions such as the west coast of Africa and Latin America, which if awarded, will significantly increase existing total order backlog of $6.92 billion (MYR 22.2 billion).

In the OSV sector, the firm is finalizing plans to gradually dispose of identified older tonnage in line with its fleet renewal strategy. It will also expand its fleet and has plans to acquire new tonnage.

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