KUALA LUMPUR (May 31): Bumi Armada Bhd’s net profit for the first quarter ended March 31, 2018 (1QFY18) edged higher by 0.64% to RM48.4 million or 0.83 sen per share, from RM48.1 million or 0.82 sen per share, as the floating, production and operation (FPO) segment saw better results in the current quarter.

The group’s revenue jumped by 48.5% to RM600.3 million in the current quarter, as compared to RM404.2 million recorded in 1QFY17.

In a statement, Bumi Armada said today that the increase in revenue was mainly due to stronger contribution from its FPO business of RM460.3 million in 1QFY18, compared with RM239.7 million in 1QFY17.

“This increase was mainly due to higher revenue contributions from the four new FPO projects delivered in 2017,” it said.

The offshore marine services (OMS) however saw a decline in the revenue by 14.9% to RM140.0 million during the same period, due to the reduced offshore support vessel (OSV) vessel utilisation, while the subsea construction (SC) segment also saw lower overall activity in Lukoil project in 1QFY18, as compared to 1QFY17.

“Over the first quarter of 2018, Bumi Armada has continued to achieve safe operations and high operational uptimes across our fleet of vessels,” said its executive director and chief executive officer Leon Harland.

The financial results for 1QFY18 have been negatively influenced by Erin Petroleum Nigeria Limited's (“EPNL”) abandonment of its operations in the Oyo field, Nigeria, and the associated costs that were expected to incur as result of it, he added. 

“All our other operating FPO units have contributed positively towards revenue during Q1 2018. Armada Olombendo in Angola has since achieved final acceptance on 17 May. She has been performing very well for our client ENI Angola, since first oil was produced with very high uptimes and excellent safety records. With the final acceptance now complete, the group will recognise the full charter rate for the FPSO, going forward,” he noted.

According to Harland, Bumi Armada will continue to work towards the final acceptance of the Armada Kraken FPSO in the UK North Sea, while seeing growing interest from clients for new FPSO facilities with the FPO teams actively pursuing new projects.

He however emphasized that the OSV vessel utilisation remained weak in 1QFY18, despite stronger oil prices over the past few months and that the group has yet to see signs of recovery in demand to be converted in actual increase in OSV charter contracts and rates.

As of writing, Bumi Armada’s share price gained by 1.36% or 1 sen to 74.5 sen, with about 3.5 million shares traded, giving it a market capitalisation of RM4.37 billion.