FPO boost helps Bumi Armada report $30 million, third-quarter profit

Malaysia-based international offshore energy facilities and services provider Bumi Armada has announced a RM123.7 million (US$30 million) profit as part of its third-quarter 2017 financial results.

Revenue increased by 69.9 per cent year on year to RM641.4 million.

The floating production and operation (FPO) business revenues increased by 247.2 per cent year on year to RM402.7 million, due to stable or improving contributions across all the floating production storage and offloading (FPSO) and floating storage unit (FSU) units during the quarter.

Offshore marine services (OMS) revenue declined quarter on quarter, mainly due to one-off revenue from the LukOil project in the second quarter.

During the quarter, offshore support vessels (OSV) fleet utilisation registered a slight improvement at 54 per cent versus 53 per cent in Q2 2017.

Q3 2017 EBITDA increased to RM466.9 million as compared to RM428.2 million in Q2 2017, due to stronger contributions from the FPO business as well as a substantial increase in share of results from joint ventures.

Bumi Armada CEO Leon Harland said delivery of new projects continued to yield improving contributions, while projects in Angola and the North Sea were close to completion.

Within the OMS business unit, the OSV utilisation improved slightly but rates remained soft. Vessel activity in the fourth quarter is expected to decline due to the monsoon season in South East Asia and the winter in the Caspian, he said.