Bumi Armada Berhad (Bumi Armada) reported a net profit of RM118.81 million in Q2 2023, a decrease from Q1 2023 due to lower contribution from Armada Kraken FPSO which was partially offset by gains in respect of the sale of the Armada Claire FPSO and the last remaining offshore support vessels (OSV) during the quarter.
The group also recorded a lower revenue at RM441.3 million in Q2 2023 as compared to Q1 2023 mainly due to the failure of hydraulic submersible pump (HSP”) transformers held by Armada Kraken FPSO.
Cash flows remained robust with RM276.4 million generated from operating activities during the quarter. Together with the proceeds from vessel sales, the funds were used to further deleverage the balance sheet and reduce interest costs for the Group.
The future firm orderbook at the end of Q2 2023 amounted to RM11.2 billion, with additional optional extensions of up to RM9.7 billion.
In June 2023, the Group’s jointly controlled entity received notification of a one-year extension for the charter of Armada Sterling II FPSO commencing in March 2024.
Bumi Armada Chief Executive Officer Gary Christenson said, “We acknowledge that the Kraken transformer related shutdown is very disappointing especially in light of the vessel’s good operating performance in recent times. Although the team worked extremely hard to bring the vessel back to pre-shutdown performance as quickly as possible, the unplanned shutdown has negatively impacted our financial results for the quarter.”
