Bumi Armada sees earnings slip to RM182.77mil in 1Q
KUALA LUMPUR: Bumi Armada Bhd reported lower top- and bottomlines in the first quarter of 2025 (1Q25) as there were reduced contributions from two of its floating production storage and offloading (FPSO) vessels.
In the quarter under review, Bumi Armada said net profit was RM182.77mil, down from RM240.54mil, while revenue shrank to RM473.97mil from RM635.54mil in the year-ago quarter.
The group's earnings per share slipped to 3.08 sen from 4.06 sen previously.
In a statement announcing its results, Bumi Armada said the weaker performance was primarily owing to reduced contributions from Armada Kraken FPSO. This was due to the recognition of compensation payable to the charterer in 1Q25 upon confirmation of the second annual charter extension to April 1, 2027.
Meanwhile, there was an absence of revenue from Armada Olombendo FPSO due to major maintenance works.
Bumi Armada CEO Gary Christenson maintained that Bumi Armada's performance remained positive from an operational standpoint with all active vessels perfroming well with zero lost time injury.
"We retained a significant cash balance whilst also paying down debt," he added.
However, the Armada Kraken FPSO has entered its first
annual option period extension commencing on April 1 with a 70% reduction in charter rate. This is expected to lead to a significant reduction in group revenue for the year.
"In these uncertain times, we are looking to take advantage of our improved operational and financial strength by pursuing appropriate new project opportunities," said Christenson.
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The Star
22-05-2025
- The Star
Bumi Armada sees earnings slip to RM182.77mil in 1Q
KUALA LUMPUR: Bumi Armada Bhd reported lower top- and bottomlines in the first quarter of 2025 (1Q25) as there were reduced contributions from two of its floating production storage and offloading (FPSO) vessels. In the quarter under review, Bumi Armada said net profit was RM182.77mil, down from RM240.54mil, while revenue shrank to RM473.97mil from RM635.54mil in the year-ago quarter. The group's earnings per share slipped to 3.08 sen from 4.06 sen previously. In a statement announcing its results, Bumi Armada said the weaker performance was primarily owing to reduced contributions from Armada Kraken FPSO. This was due to the recognition of compensation payable to the charterer in 1Q25 upon confirmation of the second annual charter extension to April 1, 2027. Meanwhile, there was an absence of revenue from Armada Olombendo FPSO due to major maintenance works. Bumi Armada CEO Gary Christenson maintained that Bumi Armada's performance remained positive from an operational standpoint with all active vessels perfroming well with zero lost time injury. "We retained a significant cash balance whilst also paying down debt," he added. However, the Armada Kraken FPSO has entered its first annual option period extension commencing on April 1 with a 70% reduction in charter rate. This is expected to lead to a significant reduction in group revenue for the year. "In these uncertain times, we are looking to take advantage of our improved operational and financial strength by pursuing appropriate new project opportunities," said Christenson.
New Straits Times
22-05-2025
- New Straits Times
Bumi Armada Q1 net profit falls 24pct to RM183mil on lower FPSO contributions
KUALA LUMPUR: Bumi Armada Bhd's net profit fell 24 per cent to RM182.77 million in the first quarter ended March 31, 2025 (1Q25) from RM240.54 million a year ago, mainly due to lower contribution from Armada Olombendo production storage and offloading (FSPO) and Armada Kraken FPSO. Revenue for the quarter also declined 25.4 per cent to RM473.97 million from RM635.54 million previously, the group's filing to Bursa Malaysia showed. This translated to lower earnings per share of 3.08 sen, compared to 4.06 sen in 1Q24. No dividend was declared or recommended for the current financial period. In a separate statement, Bumi Armada said it maintained a strong cash balance despite a decline in operating cash flow to RM184.4 million in 1Q25. The lower cash flow was attributed to reduced operating profit and unfavourable working capital movements compared to the previous quarter (4Q24). The future firm vessel order book at the end of 1Q25 amounted to RM10.1 billion, with additional optional extensions of up to RM9.7 billion. Chief executive officer Gary Christenson said Bumi Armada had an excellent quarter operationally with all our active vessels performing well with zero LTI's. He noted that the company retained a significant cash balance while continuing to reduce its debt. "Going forward, the Armada Kraken FPSO has entered its first annual option period extension commencing on April 1 with a 70 per cent reduction in charter rate which will lead to a significant reduction in group revenue for the year. "In these uncertain times, we are looking to take advantage of our improved operational and financial strength by pursuing appropriate new project opportunities," he added. On prospects, Bumi Armada said it is pursuing new opportunities in targeted markets. The group noted that it will continue to prioritise the safety and health of all employees, partners, and assets, enhance the operational performance of its vessels, and maintain as well as strengthen effective relationships with clients and partners. This includes securing new projects in core regions with preferred partners and advancing its energy transition pathway to achieve the net zero goal by 2050 or earlier, focusing on carbon emission reduction and carbon capture technologies and solutions.
New Straits Times
23-04-2025
- New Straits Times
Bumi Armada earnings frontloaded in Q1, core profit seen up to RM250mil
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