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Bumi Armada posts loss

By  Monday, 29 February 2016 00:30
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Malaysia-based Bumi Armada Berhad reported Q4 2015 revenue of RM589.0 million, which was 16.1% lower than the corresponding quarter in 2014.

Net loss amounted to RM85.1 million in Q4 and RM234.6 million in FY15, the company said.

The decline in revenue in FY15 was due to lower revenue in the offshore support vessel (OSV) and transportation and installation (T&I) businesses, which saw year-on-year revenue fall by 17.8% and 57.7%, respectively.

The floating production storage and offloading (FPSO) and floating gas solutions (FGS) businesses, however, saw a 37.6% year-on-year increase in revenue in FY15 due to higher activities.

The group also generated RM535.4 million in positive net cash flows from operating activities during FY15,

Chan Chee Beng, acting CEO of Bumi Armada said, “The market remains extremely challenging in the services segment of the offshore oil and gas business, highlighted by the decline in both utilization and new chartering and contract activities in both the OSV and T&I segments.

“With the continuing volatility in oil prices, we will continue to focus on cost management and operational efficiency in order to successfully operate through this difficult period. We have managed to make some significant reductions in our selling and distribution costs, as well as administrative expenses in FY15.

“2016 will continue to be a very busy year as we look to deliver four large projects, such as three FPSOs and one LNG FSU, which are all scheduled to be operational in 2017, significantly increasing the cash flows and profitability of the group. The expected revenue from these new projects forms a large part of our current firm order book of RM27.5 billion,” Chan concluded.

Image: Armada Sterling II FPSO / Bumi Armada

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