Bumi Armada Berhad Revenues Decline with Lower Vessel Utilization
Malaysia-based oilfield services company, Bumi Armada Berhad revealed Friday in its third quarter financial results that revenues for the first nine months of 2015 declined by 6.2 percent, compared to the same period last year, to $371.6 million due to the lower utilization of vessels and lower activity in its transport and installation business unit.
The company also posted a year to date net loss of $34.9 million and its net profit decreased to $16.3 million in 3Q 2015, from $25.2 million in 3Q 2014. Bumi Armada’s year to date EBITDA increased to $199.8 million, which marked a 12.4 percent increase over the corresponding period in 2014. The main driver of the EBITDA increase was the company’s FPSO business unit as well as contributions from the FGS business, which saw a combined year to date segmental increase of 49 percent.
Commenting on the financial results, Chan Chee Beng, the acting chief executive officer of Bumi Armada, said in a company statement:
“The FPSO business is the main revenue and EBITDA generator of the group and continues to deliver. The weak oil price and negative short-term outlook for the oil and gas market however, continues to put pressure on the utilisation of our OSV and subsea vessels. As part of our rationalization and efficiency plans, we have merged the OSV and T&I businesses into a new Offshore Marine Services (OMS) unit and have made further reductions in headcount, primarily related to the lower activities in the OSV and T&I businesses.
“Despite the challenging operating environment, the group continues to generate positive cash flow from operations and registered a net profit for the quarter for $16.3 million…While the market remains pressured by lower oil prices, the group’s long-term outlook is anchored by its firm order-book of $6.7 billion…with its new FPSO and FGS projects expected to come on stream in 2016.”
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