KUALA LUMPUR (Nov 19): Bumi Armada Bhd's net profit fell some 44.2% to RM85.62 million or 1.46 sen per share in the third quarter ended Sept 30, 2020 (3QFY20), from RM153.37 million or 2.61 sen per share last year, mainly due to absence of a gain on disposal in the current quarter.

Its quarterly revenue, however, was 6.9% higher at RM564.44 million, from RM527.81 million.

Bumi Armada also attributed the lower earnings to a gain on disposal of joint ventures and property, plant and equipment, including Armada Perdana, recognised in 3QFY19 as well as higher depreciation arising from revision of vessels' useful lives and residual values in the year 2020.

The company saw losses from its share of results of joint ventures and associates of RM472,000, versus profit of RM54.75 million in 3QFY19, showed in a filing with the local stock exchange today.

Other operating income for the quarter was down 37.8% to RM50.85 million, from RM81.82 million in 3QFY19, while the company also recognised an impairment of RM16.15 million this quarter.

For the cumulative nine-month period, Bumi Armada reported a net loss of RM18.58 million or 0.32 sen per share, versus a net profit of RM293.79 million or five sen per share last year, while revenue was up 10.9% at RM1.72 billion, from RM1.56 billion last year.

The group blamed the loss-making nine months on the impairment on vessels, despite recognising a higher revenue thanks to the improved vessel availability for Armada Kraken FPSO (floating production storage and offloading) as well as the improved OSV (offshore support vessels) utilisation at 56% year-to-date, from 49% in the same period last year.

On prospects, Bumi Armada said oil prices are not expected to strengthen significantly over the next three months due to the global economic turmoil and ongoing concerns over the Covid-19 pandemic.

"The group expects the FPO (floating production and operations) business to be relatively stable through to the end of 2020, while the OMS (offshore marine services) business is anticipated to be weaker," Bumi Armada added.

Bumi Armada, in a separate statement today, noted that the future firm order book at the end of 3QFY20 amounted to approximately RM17.2 billion, with additional optional extensions of up to RM10 billion.

"Despite certain operational and logistical difficulties in the Covid-19 environment, Bumi Armada maintained our excellent HSE (health safety and environment) performance in the third quarter with zero lost-time injuries," said its chief executive officer Gary Christenson.

"We were also pleased to be able to announce that our joint-venture company, Armada D1 Pte Ltd, received a Notification of Award from ONGC for a new bareboat charter lease for the Armada Sterling FPSO off the west coast of India," he added.

At noon break, Bumi Armada was up half a sen or 1.85% at 27.5 sen, giving it a market capitalisation of RM1.62 billion. Some 29.08 million shares were traded.