KUALA LUMPUR (May 29): Bumi Armada Bhd reported a net loss of RM223.97 million for the first quarter ended March 31, 2020 (1QFY20), compared with a net profit of RM62.21 million a year ago, as it recognised non-cash impairments of RM314.4 million following the oil-price crash in 1QFY20 that pushed Brent to 30-year lows.
"The fall in oil prices reflects the expected low demand for oil in light of the economic turmoil from the Covid-19 pandemic. The group has proactively taken a non-cash impairment as the OSV (offshore support vessel) and SC (subsea construction) segments’ asset values are affected," Bumi Armada said in a stock exchange filing today.
This resulted in the offshore energy facilities and services provider posting a loss per share of 3.81 sen for 1QFY20, compared with the earnings per share of 1.06 sen for 1QFY19.
Quarterly revenue for the quarter, however, increased 12.41% to RM552.62 million from RM491.61 million a year ago.
The group also recorded an improved operating profit before impairment of RM241.9 million compared with RM167 million previously, said Bumi Armada chief executive officer Gary Christenson.
“The FPO (floating production and operation) fleet continued to deliver stable operations in [1QFY20]. The FPO revenue share for the group continues to increase and is relatively immune to low oil prices,” he said.
The FPO business delivered a higher revenue of RM462.1 million or 83.6% of the group’s total revenue during 1QFY20. In contrast, the segment generated a revenue of RM419.5 million in 1QFY19.
“The group focused on measures to protect staff and assets from the impact of the Covid-19 pandemic. In parallel, the group maintained its strong safety performance with another Lost-Time Injury-free quarter in [1QFY20],” said Christenson.
Going forward, the group said it will also continue to focus on safety, sustainability, operational excellence, and financial discipline.
As at March 31, the group’s order book stood at RM18 billion, with additional optional extensions of up to RM10.3 billion.
Bumi Armada shares were trading unchanged at 22 sen at 3pm, after 71.63 million shares exchanged hands.