Malaysia's Bumi Armada 1Q 2016 Net Profit Down 67.5% YOY to $5.7M
Malaysia’s offshore energy facilities and services provider Bumi Armada Berhad posted a net profit of $5.66 million (MYR 23.4 million) for first quarter 2016 (1Q 2016), down 67.5 percent from $17.42 million (MYR 72 million) a year ago, the firm said Tuesday in the release of its latest quarterly financial results.
Bumi Armada indicated that the slump in net profit was partly due to the firm’s acceptance of a non-cash impairment charge of $4.21 million (MYR 17.9 million). This was for the Armada Condor transport and installation vessel in the offshore marine services (OMS) business unit.
Meantime, 1Q 2016 reveneue fell 24.7 percent to $104.26 million (MYR 430.8 million), compared to $138.48 million (MYR 572.2 million) in the same period last year.
Bumi Armada noted that the revenue decline was partially a result of lower contributions from the Armada Claire FPSO (floating production, storage and offloading) as well as lower vessel utilization in its OMS business. Revenue for the FPSO and OMS segments, which accounted for 50.3 percent of the company’s total revenue, fell 25.6 percent and 23.8 percent in 1Q 2016, compared to the previous year.
The firm has also filed legal action against Woodside Petroleum Ltd.'s unit Woodside Energy Julimar Pty Ltd. as it seeks $283.5 million in damages for unlawful contract termination by the Australian oil and gas exploration and production company.
Looking ahead, the FPSO and floating gas solutions (FGS) units in Bumi Armada are focused on delivering three floating facilities. The Armada Kraken, Armada Olombendo and Karapan Armada Sterling III FPSOs as well as the FSU (floating storage unit) Armada LNG Mediteranna are targeted to leave Keppel’s yard in Singapore in the second half of 2016.
“Delivery of these projects will trigger a significant improvement in earnings and cash flow generation for the Group over full year 2017,” Bumi Armada said in the press release.
It added that although business in offshore support vessel (OSV) segment remains challenging, the company’s “strong position in the Caspian Sea with its subsea construction operations should help to stabilize overall earnings in the OMS business, where the order book stood at $677.63 million (MYR 2.8 billion) as at end March 2016.
Bumi Armada said its total order book as at end March 2016 stood at $8.8 billion (MYR 36.4 billion), comprising $5.85 billion (MYR 24.2 billion) in firm contracts and $2.95 billion (MYR 12.2 billion) of optional extensions.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Malaysia's InvestKL Woos Top Oil, Gas MNCs to Base in Kuala Lumpur
- Petrobangla Invites EOIs for 3 Offshore Exploration Blocks in Bay of Bengal
- Malaysia's SapuraKencana Posts 7.1% Gain in 2Q FY17 PAT to $27M
- TH Heavy Engineering, McDermott End Partnership in Malaysia
- Singapore's NUS Slowly Builds its Petroleum Engineering Program
- Gunvor CEO Sees Russian Refining Capacity Taking Hit from Drone Strikes
- Sinopec Engineering Posts Higher Annual Petrochemicals Revenue
- Subsea7 Secures Contract to Service Woodside's Trion
- These Factors Helped Brent Oil Price Break Above $85
- Imperial Pipeline in Winnipeg Goes Offline for Three Months
- Adnoc Inks Supply Deal for Ruwais LNG Project with Germany's SEFE
- Gaz System to Acquire Gas Storage Poland
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension