malaysiang
KUALA LUMPUR, Bumi Armada Bhd’s net profit for the second quarter ended June 30, 2024 (2Q 2024) rose to RM265.96 million from RM118.77 million in the same quarter of 2023.
It said in a filing with Bursa Malaysia today that revenue also increased to RM578.86 million versus RM441.32 million previously.
‘The increased in revenue was contributed by the operation division, which includes the provision of floating production storage offloading (FPSO) vessels, floating gas solutions unit, subsea construction assets and marine-related services,’ it said.
For the first half of 2024, the offshore production and support services provider recorded a higher net profit of RM506.50 million from RM319.78 million, and revenue appreciated to RM1.21 billion from RM985.31 million.
It said the revenue for the year to date was contributed by the settlement of the increase in operating fee of Armada Olombendo FPSO.
Meanwhile, it said in a statement that cash flow generated from operations was particularly strong during the qu
arter at RM619.3 million assisted by favourable net working capital movements.
The group recorded a strong cash balance of RM1.214 billion after repayment of US$59 million of debt during the quarter due to prudent financial management and strategic practices.
As at June 30, 2024, net current liabilities were RM787.3 million mainly due to the classification of sukuk murabahah of RM1.5 billion and its corresponding derivative financial liabilities of RM613.8 million as current liabilities.
It said the sukuk murabahah will be refinanced with new six-year financing facilities of US$400 million (RM1.887 billion).
‘Following Bank Negara Malaysia’s approval, the related financing agreements were signed on Aug 15, 2024, and the financing will be disbursed before the sukuk murabahah’s due date in September 2024,’ Bumi Armada said.
The future firm order book at the end of 2Q 2024 amounted to RM12.1 billion, with additional optional extensions of up to RM10.9 billion.
The increase in the order book compared to 1Q
2024 is due to Armada Sterling V FPSO achieving final acceptance on July 1, 2024 and the first annual option period for the Armada Kraken FPSO contract being confirmed.
Commenting on the results, chief executive officer Gary Christenson said: ‘Our robust cash generation enabled us to further improve our balance sheet as we continue to explore potential new projects to enhance shareholder value.’
Source: BERNAMA News Agency
