Profit up for Bumi Armada
June 7, 2018 | Singapore | OSEA2018 Industry Insights
Malaysia-based Bumi Armada saw steady profits and higher revenue in the first quarter as it reported increased activity for its floating production and operations business.
Revenue for the first quarter rose 48.5% to 600.3 million ringgit ($150 million), compared with 404.2 million ringgit in the same period last year.
The boost was mainly due to stronger contributions from the floating production business, which saw its revenues double to 460.3 million ringgit in the quarter.
The company’s offshore marine services business, however, saw revenue decline by 14.9% to 140 million ringgit as a result of reduced vessel utilisation, which dropped to 38% in the first quarter from 42% in the same period last year.
The period saw a net profit of 48.4 million ringgit, compared with a net profit of 48.1 million ringgit last year.
Bumi said that offshore support vessel utilisation remained weak in the first quarter and it has “yet to see the signs of recovery in demand to be converted in actual increase in OSV charter contracts and rates”.