Malaysia-based international offshore energy facilities and services provider Bumi Armada Bhdyesterday announced its fourth quarter (Q4) and full year (FY) 2017 financial results.
The Group saw revenue for FY 2017 increase by 82.3% to RM2.4 billion over FY 2016. This increase was mainly due to higher revenue from the FPO business, which increased by 263.5% in FY 2017, versus FY 2016. The increase in the FPO revenues was mainly due to stronger contributions from the four new FPO projects delivered over the course of the year.
The OMS business saw a 5.0% increase in revenues in FY 2017 over FY 2016. The OSV segment remained challenged with high supply and low demand for vessels, which put pressure on charter rates. The SC segment in FY 2017, saw stronger contributions on the back of additional work scope awarded during the year in relation to the LukOil contract in the Caspian Sea.
For FY 2017, the Group registered a net profit of RM352.2 million, which is a significant improvement from the net loss of RM2.0 billion in FY 2016, incurred on the back of non-cash impairment charges taken during that year.
Commenting on the results, Leon Harland, Executive Director and Chief Executive Officer of Bumi Armada said, “As I have highlighted previously, 2017 was a transition year for the Group, as we delivered four new FPO projects, and this is reflected by these results.
The OSV business will remain challenged, as we do not expect any major changes to the demand/supply situation in 2018. The SC unit has planned activity in Turkmenistan and Russia over the year, and we are actively discussing further work scope for subsequent years.
The Group’s results were further improved by the various internal rationalisation activities that have been introduced to streamline our organisational processes, as well as by the prioritisation of activities within the business units.
“For 2018, we expect the Company to move into a more stable phase, with all the current FPO and OMS activities to remain fairly consistent. We remain focused on building a robust business model and we want to complete our internal rationalisation activities and improve our balance sheet structure. We also look for growth and explore new projects that we feel suit Bumi Armada from a strategic position, as well as balance the appropriate rewards with the risks involved,” said Harland.
