Malaysia-listed offshore services provider Bumi Armada posted revenue of MYR572.2 million (USD158.3 million), up 22% year on year (y/y) for the first quarter that ended on 31 March 2015.
At the same time, the company’s profit hiked 11% y/y to MYR73 million.
Gross profit rose 43% to MYR187.8 million in first-quarter 2015, compared with MYR130.9 million in the same period last year. The higher earnings were attributed to the increase of revenue contribution from its floating production, storage, and offloading (FPSO) project as well as the higher contribution from its offshore support vessel (OSV) business segment.
Earnings from Bumi Armada’s FPSO division hiked 48% or MYR95.4 million to MYR291 million in first-quarter 2015 from MYR195.6 million in first-quarter 2014, thanks to the increased conversion activity from the Kraken FPSO project, contribution from the Eni Block 15/06 FPSO project that was awarded in 2014, as well as the company’s tanker operations.
Similarly, revenue from its OSV segment grew MYR8.3 million or 5% y/y to MYR164.5 million in first-quarter 2015 from the contribution of new vessels acquired in 2014. However, the earnings were partly offset by lower utilisation of Class B vessels, which have been affected by challenging market conditions.
The company’s transport and installation segment generated MYR116.6 million in first-quarter 2015, largely unchanged y/y, as contribution from higher operation and maintenance activity of the Armada Installer operations in Turkmenistan, and Armada Hawk operations in India, were offset by lower utilisation of the Armada Condor and lower activity from the Lukoil project in the Caspian Sea.
The company remains positive on the long-term outlook of the offshore oil and gas services industry and is confident of the long-term underlying fundamentals of the group. Bumi Armada will continue to pursue new opportunities that adequately meet the internal requirements for a balanced risk and return criteria, while it remains focused on efficiency and productivity in its current structure.
Meanwhile, Bumi Armada cited in its filing in the Malaysian stock exchange Bursa Malaysia that one of its units, Bumi Armada Caspian (BAC), is facing a claim of EUR28.5 million (USD31.3 million) from SEA Srl (SEA) over a service contract for post trenching and backfilling services.
“BAC has obtained the views of its legal counsel who considers that BAC has good prospects of success in defending the claim,” said Bumi Armada.
So far, no date has been set as yet for the arbitration hearing and Bumi Armada will make further announcements of any material development on the claim from time to time.