Malaysia-based offshore oilfield services provider Bumi Armada Berhad posted a net profit of $19.8 million (MYR 72 million) in the first quarter of 2015 (1Q 2015), up 11.2 percent from $18.5 million (MYR 67.4 million) recorded in the corresponding period last year, according to company's financial results released Tuesday.
Company revenue increased 22 percent in 1Q 2015 to $157.2 million (MYR 572.2 million), compared with $128.9 million (MYR 468.9 million) in the previous year, with the gains attributed to additional contributions from the Eni 15/06 FPSO conversion project, higher conversion activities from the Kraken FPSO project and improved utilization of tankers held as FPSO (floating production, storage and offloading) conversion candidates.
There was a 5.3 percent increase in revenue contribution from Bumi Armada's Offshore Support Vessel (OSV) business, with earnings rising $2.3 million (MYR 8.3 million) to $45.2 million (MYR 164.5 million) during this period.
Meanwhile income from its Transport and Installation (T&I) Business Unit was flat as higher operations and maintenance activity of the Armada Installer operations in Turkmenistan and Armada Hawk operations in India were offset by lower utilization of the Armada Condor and reduced activity from the LukOil project in the Caspian Sea.
“Despite the ongoing weakness in the global oil and gas sector, we are encouraged by the financial results Bumi Armada has posted in the 1Q 2015. Recognizing that the industry as a whole is going through challenging times, we continue our efforts to reduce cost, seek further ways to enhance efficiency and execute well on our existing projects," Acting CEO Chan Chee Beng said in the press release.
Bumi Armada currently has an order book of $10.7 billion (MYR 38.9 billion), comprising $7 billion (MYR 25.6 billion) on firm contract periods and $3.7 billion (MYR 13.3 billion) on optional extensions.
“We have already taken significant actions to reduce cost and improve efficiency by reorganizing our organization structure to streamline our business, including the closure of our Oilfield Services Business Unit and downsizing of our T&I Business Unit, via a right-sizing exercise which was carried out across the organization during 1Q 2015 through to April that is expected to yield an annual cost saving of up to $17.9 million (MYR 65 million) going forward.” Chan added.
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