Bumi Armada Profit Rises 19 Pct To RM211.33 Mln In 3Q

KUALA LUMPUR, Nov 22 (Bernama) -- Bumi Armada Bhd’s net profit increased by 19 per cent to RM211.33 million in the third quarter ended Sept 30, 2024 (3Q FY2024) from RM177.77 million in the same period last year.

Its revenue rose by five per cent to RM551.86 million compared to RM524.79 million previously, said the Malaysia-based international offshore energy facilities and services provider in a Bursa Malaysia filing today.

It said the group generated revenue of RM1.77 billion for the nine-month (9M) period of FY2024, an increase of RM256.2 million compared to the 9M FY2023.

“The operations segment revenue increased due to the settlement of the operating fee escalation of Armada Olombendo floating production storage and offloading (FPSO) and lower revenue in YTD 2023 due to the failure of Armada Kraken FPSO’s hydraulic submersible pump transformers,” it said.

The group generated a net profit of RM717.8 million for 9M FY2024, an increase of RM220.3 million compared to 9M FY2023 mainly due to higher contributions from Armada Kraken FPSO and Armada Olombendo FPSO, offset by lower other income due to the gain on disposal of vessels in 9M FY2023.

Meanwhile, in a separate statement, Bumi Armada said the group returned to a net current asset position of RM1.05 billion as at Sept 30, 2024 following the successful refinancing of the RM1.5 billion sukuk murabahah via syndicated facilities with a six-year tenor at an aggregate amount of up to US$400 million (RM1.65 billion).

The proceeds from the sukuk were applied towards the redemption and settlement of the sukuk murabahah and all its related cross-currency and interest-rate hedge liabilities.

“The group’s cash balance remained robust at RM1.10 billion at the end of the quarter,” it said.

The future firm vessel order book at the end of 3Q 2024 amounted to RM10.2 billion, with additional optional extensions of up to RM9.5 billion.

On prospects for the current financial year, in light of the straight-line accounting depreciation of certain assets, the group will review the difference between net book value and value-in-use (VIU) for impairment purposes.

“The VIU will be computed using key assumptions such as the expected contractual period of the vessel, charter fees, prevailing discount rate, inflation rate and residual value. Impairment may be recognised as a result and would not reduce the group’s cash flows,” it added.

-- BERNAMA