Bumi Armada's 2Q earnings rise 16.8% to RM139.9m on higher operating profit

Bumi Armada's 2Q earnings rise 16.8% to RM139.9m on higher operating profit
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KUALA LUMPUR (Aug 27): Bumi Armada Bhd’s net profit for the second quarter ended June 30, 2021 (2QFY21) rose 16.77% to RM139.86 million, from RM119.77 million a year ago, underpinned by higher operating profit.

Quarterly revenue, meanwhile, grew 1.44% to RM615.56 million from RM606.8 million, driven by higher floating, production and operation (FPO) revenue, the company's filing with Bursa Malaysia showed.

Earnings per share (EPS) rose to 2.38 sen from 2.04 sen.

The group said the better performance of the FPO segment was mainly due to higher vessel availability of its Armada Kraken floating production, storage and offloading (FPSO) vessel.

The group did not declare any dividend for the latest quarter.

For the half year ended June 30, 2021 (1HFY21), the group returned to the black by posting a net profit of RM302.65 million, versus a net loss of RM104.19 million previously, mainly due to higher impairment losses on vessels recognised last year, higher operating income, lower finance cost and a higher share of results of joint ventures (JVs) and associates year-to-date (YTD).

For 1HFY21, the company recorded EPS of 5.14 sen against loss per share of 1.77 sen a year ago.

Revenue for the period increased by 1.63% to RM1.18 billion from RM1.16 billion, driven by revenue from the FPO segment due to improved vessel availability of the Armada Kraken FPSO.

The group’s chief executive officer (CEO) Gary Neal Christenson said in a statement that its focus on operational excellence and cost efficiencies underpinned the solid financial performance in 2QFY21.

“We will continue to focus on safety, sustainability, operational excellence and financial discipline," he added.

The group’s future firm order book at the end of 2QFY21 amounted to RM14.9 billion, with additional optional extensions of up to RM9.5 billion.

While there are ongoing concerns over the impact of the Covid-19 pandemic, the group expects the FPO business to be relatively stable for the remainder of 2021.

At the noon break, Bumi Armada was half a sen or 1.18% lower at 42 sen, valuing the group at RM2.48 billion.

Lam Jian Wyn