(This article's headline has been amended.)

KUALA LUMPUR (May 18): Bumi Armada Bhd needs to operate its assets at optimum levels, secure new charters for available assets, and dispose of its surplus vessels to mitigate the Covid-19 pandemic’s impact on the oil and gas (O&G) support services provider’s business.

Bumi Armada chief executive officer Gary Neal Christenson said in the company’s latest annual report, which was filed with Bursa Malaysia today, the group needs to remain vigilant on cost and ensure it reduces its debt while managing its balance sheet.

"In 2020, the safety of our employees, assets, and partners will continue to be a primary focus for the group. Our front-line operations are out at sea with our people exposed to potentially hazardous environments.

"The outbreak of the coronavirus in late 2019 and its spread across the globe will have a significant impact on the world’s economic growth this year. Currently, numerous countries are going through an economic slowdown/recession, which then caused a further negative impact on oil prices, pushing Brent to its lowest levels in over 30 years. Low oil prices will result in cuts or delays in investment in the O&G sector, especially for new projects, which will reduce the number of potential growth opportunities.

"As highlighted earlier, the group’s key targets for 2020 will require everyone’s full attention and commitment to be successful,” Christenson said.

At Bursa today, Bumi Armada’s share price rose six sen or 30.77% to 25.5 sen at 11:04am for a market capitalisation of RM1.5 billion. The stock saw some 389 million shares traded.