Bumi Armada says 3Q net loss at RM503m on higher impairments

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KUALA LUMPUR (Nov 23): Bumi Armada Bhd reported today a third quarter net loss of RM502.83 million versus a net profit of RM123.73 million a year earlier as the oil and gas support services provider recognised significantly higher asset impairments.

In a statement to Bursa Malaysia today, Bumi Armada said revenue fell to RM588.05 million in the third quarter ended Sept 30, 2018 (3QFY18) from RM641.39 million. Bumi Armada's income statement shows that impairments rose to RM563.48 million from RM1.91 million.

"During the third quarter of 2018, the group recognised non-cash impairments of RM41.4 million and RM522.1 million for the FPO (floating production and operation) and OMS (offshore marine services) businesses respectively.

"The group is currently focusing on optimising our cost structure and looking to strengthen our balance sheet via monetisation of under-utilised assets and generating sustainable cash flow," the group said.

For the cumulative nine-month period (9MFY18), Bumi Armada said net loss stood at RM1.04 billion versus a net profit of RM288.43 million a year earlier. The group said revenue was higher at RM1.84 billion compared to RM1.74 billion in the previous year.