Finances hinder Bumi Armada’s progress

By FARA AISYAH / Pic By MUHD AMIN NAHARUL

Bumi Armada Bhd said its current financial situation is affecting its ability to secure new projects.

In an exchange filing yesterday, the oil and gas support services provider noted despite Bumi Armada’s concerted efforts to fundamentally improve its financial situation, the company has not made substantial progress with the financial parties involved — resulting in the group being forced to drastically reduce its cash outflow and limit its efforts to pursue new work.

The company is focusing on strengthening its overall balance sheet and is working with lenders to put in place a refinancing of the group’s US$500 million (RM2.08 billion) debt.

“The company wishes to further clarify it is in active negotiations with financiers, and targets to complete the refinancing by the end of the first quarter of 2019,” Bumi Armada’s filing noted.

Bumi Armada’s shares closed at 19.5 sen yesterday — 3.5 sen or 21.88% higher for the day.