Bumi Armada posts lower net profit of RM332.06mil for FY23

KUALA LUMPUR: Bumi Armada Bhd generated a lower profit of RM332.06 million in its 2023 financial year (FY2023) as compared with RM732.41 million in FY2022.

This was mainly due to lower contribution from Armada Kraken floating, production, storage and offloading (FPSO) amid the failure of hydraulic submersible pump transformers and impairment, it said in a filing with Bursa Malaysia today.

Revenue for the year ended Dec 31, 2023, was also lower at RM2.13 billion as compared to RM2.41 billion before.

The group reported a net loss of RM165.49 million in the fourth quarter of 2023 (4Q 2023) versus a net profit of RM210.68 in the same quarter previously, mainly due to the impairment of property, plant and equipment (PPE) of RM514.4 million on Armada Kraken FPSO and Subsea Construction assets.

Revenue was higher at RM622.98 million versus RM605.03 million before.

“Our vessels, particularly Armada Kraken FPSO, performed well during the quarter despite recognition of non-cash impairment of PPE, which impacted our quarterly results.

“Cash generation remained robust, which enabled us to reduce our debt further,” chief executive officer Gary Christenson said in a statement.

Moving forward, Bumi Armada will continue to explore ways to enhance shareholder value, including new projects and possible corporate activities, he said.

“In October 2023, the group finalised a syndicated term loan facility of US$105.5 million (US$1=RM4.76) to refinance the previous term loan facility.

“At year-end, net current liabilities were RM1.42 billion due to the classification of the sukuk murabahah debt as current liabilities,” it said.

The group said it would continue working towards refinancing the sukuk murabahah debt before it falls due in September 2024.

It said the future firm order book at the end of 4Q 2023 remained robust at RM9.8 billion, with additional optional extensions of up to RM9.5 billion. – BK