Bumi Armada said the group’s firm orderbook at end 1Q20 was about RM18bil with additional optional extensions of up to RM10.3bil.
KUALA LUMPUR: BUMI ARMADA BHD posted net losses of RM219.54mil in the first quarter ended March 31,2020 due to non-cash impairments of RM314.4mil as it took a hit from the collapse in oil prices.
The international offshore energy facilities and services provider announced on Friday the net losses were in contrast with the net profit of RM61.35mil a year ago.
Its revenue rose by 12.4% to RM552.62mil from RM491.61mil. Loss per share was 3.81 sen compared with earnings per share pf 1.06 sen.
Bumi Armada generated an operating profit before impairment of RM241.9mil in 1Q20 compared with RM167mil a year ago.
“The first quarter of 2020 saw a collapse in oil prices, pushing Brent to 30-year lows. The historical low oil prices have collapsed demand in the oil service sector; thus, the group has taken non-cash impairments of RM314.4mil against the offshore marine services (OMS) business, ” it said.
Bumi Armada said the group’s firm orderbook at end 1Q20 was about RM18bil with additional optional extensions of up to RM10.3bil.
Its CEO Gary Christenson said the group generated increased revenue of RM552.6mil and increased operating profit before impairment to RM241.9mil in 1Q20.
“The floating production & operations (FPO) fleet continued to deliver stable operations in Q1 2020. The FPO revenue share for the group continues to increase and is relatively immune to low oil prices.
“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 offshore support vessels and subsea construction segments’ asset values are affected, ” he said.
https://www.thestar.com.my/business/business-news/2020/05/29/bumi-armada-posts-1q-net-losses-due-to-impairments
