Bumi Armada sees 45% profit dip in FY2023

BUMI Armada Bhd reported a 45% decrease in net profit for the financial year ending Dec 31, 2023, reaching RM332.06 million compared to RM732.41 million in the previous year.

The decline was primarily attributed to reduced contributions from the Armada Kraken floating production unit.

Annual revenue dropped to RM2.13 billion from RM2.41 billion in FY2022, resulting in earnings per share falling to 5.61 sen from 12.38 sen.

No dividend was declared for the latest quarter.

For the fourth quarter of 2023 (4Q23), Bumi Armada recorded a net loss of RM165.49 million, in contrast to a net profit of RM210.68 million in the same period a year ago.

The company cited improved quarterly operating profit before impairment at RM386.3 million and net operating cash flow of RM210.8 million.

Despite the challenges, its CEO Gary Christenson highlighted the strong performance of vessels, particularly the Armada Kraken FPSO, and underscored the robust cash generation, enabling debt reduction.

The CEO expressed the company’s commitment to exploring avenues for enhancing shareholder value, including new projects and potential corporate activities.

Bumi Armada’s shares fell 11.11% to 52 sen today, with the company’s market valuation at RM3.080 billion. — TMR