KUALA LUMPUR (June 6): Shares of Bumi Armada Bhd fell 20.47% or 13 sen in early trade on Tuesday (June 6), after the group announced that its UK North Sea-based Armada Kraken floating production storage and offloading (FPSO) system had been shut-in due to a technical failure.
At the time of writing, some 69.34 million shares exchanged hands, making it the most actively traded stock on Bursa Malaysia and also the fourth top loser on Tuesday morning.
At 50.5 sen, the offshore energy facility and service provider was valued at RM3.02 billion.
Last Friday (June 2), Bumi Armada said its heavyweight Armada Kraken FPSO was recently shut-in, following the failure of critical hydraulic submersible pump (HSP) transformers, which is expected to have a material impact on the group’s financials.
The group said the shut-in comes after the vessel’s prolonged period of top-quartile production and operational performance, according to its filing on the local bourse.
Following the news, several research houses have downgraded Bumi Armada, including CGS-CIMB Research (hold, 69 sen), Hong Leong Investment Bank Research (sell, 54 sen) and Apex Research (sell, 48 sen).