Bumi Armada says 2Q net loss at RM585m due to impairment charge

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KUALA LUMPUR (Aug 29): Bumi Armada Bhd reported a second quarter net loss of RM585.48 million compared to a net profit of RM116.59 million a year earlier on lower revenue and as the oil and gas support services provider registered impairment charge of RM478.94 million.

In a statement to Bursa Malaysia today, Bumi Armada said revenue fell to RM654.04 million in the second quarter ended June 30, 2018 (2QFY18) from RM694.42 million.

"During the quarter, the group recognised an impairment charge of RM477.2 million and RM1.7 million for the Armada Kraken FPSO (floating production storage and offloading) and Armada Gema respectively, as well as net allowances for impairment losses of RM117.4 million.

"Despite higher oil prices since the beginning of the year, oil companies continue to remain cautious on committing new capital to new projects," Bumi Armada said.

For 1HFY18, Bumi Armada said net loss stood at RM537.06 million versus net profit of RM164.7 million a year earlier. The group said revenue rose to RM1.25 billion from RM1.1 billion a year ago.