KUALA LUMPUR: Bumi Armada Bhd has posted a net loss of RM223.97 mil in the first quarter ended March 31, 2020 (1Q20) compared with a net profit of RM62.21 mil recorded in the same period last year.
Revenue, however, rose to RM552.62 mil from RM491.61 mil previously. The company reported a basic loss per share of 3.81 sen compared with basic earnings per share of 1.06 sen before.
“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 RM314.4 mil against the offshore marine services business,” Bumi Armada said in a statement.
The group generated an operating profit before impairment of RM241.9 mil in 1Q20 compared with RM167 mil in 1Q19.
Chief executive officer Gary Christenson said the company’s firm order book at the end of first quarter 2020 was approximately RM18 bil, with additional optional extensions of up to RM10.3 bil.
Commenting on the results, he said the group focused on measures to protect staff and assets from the impact of the Covid-19 pandemic.
“In parallel, the group maintained its strong safety performance with another lost-time injury free quarter in 1Q20. The floating production and operation (FPO) fleet continued to deliver stable operations in 1Q20.
“The FPO revenue share for the group continues to increase and is relatively immune to low oil prices,” he said, adding that the fall in oil prices reflected the expected low demand for oil in light of the economic turmoil from the Covid-19 pandemic.
On that note, Bumi Armada has proactively taken a non-cash impairment as the offshore support vessel and subsea construction segments’ asset values are affected.
The group will continue to focus on safety, sustainability, operational excellence, and financial discipline. – May 29, 2020, Bernama
