KUALA LUMPUR (Nov 16): Bumi Armada Bhd’s net profit increased by 18.73% to RM177.77 million for the third quarter ended Sept 30, 2023 (3QFY2023) from RM149.72 million a year earlier, on higher operating income and lower finance cost.

Revenue declined 19.64% to RM524.8 million from RM653.07 million in 3QFY2022 as cost of sales fell 24.07% to RM283.47 million from RM373.35 million, according to the offshore energy services provider's bourse filing.

Net profit for the first nine months of FY2023 slipped 4.64% to RM497.55 million from RM521.73 million in the previous corresponding period, on lower contribution from its Armada Kraken floating, production, storage and offloading (FPSO) facility and foreign exchange losses.

Nine-month revenue decreased 16.13% to RM1.51 billion from RM1.8 billion mainly due to the failure of hydraulic submersible pump transformers on the Armada Kraken FPSO facility and lower revenue from subsea construction contract work in the Caspian Sea as the project was near completion.

On prospects, Bumi Armada said it will continue to focus on improving the operational performance of its vessel as well as securing new projects in core regions.

“Armada Kraken FPSO’s operational performance has been restored to pre-shutdown levels. On board redundancy is also fully restored to original design status.

“Further to this, there is an additional new transformer onshore awaiting a weather window to enable it to be transferred to the vessel and installed to replace one of the original transformers which remains operational,” the group added.

Bumi Armada said its future firm orderbook as at end-September amounted to RM10.6 billion, with additional optional extensions of up to RM9.8 billion.

Bumi Armada’s share price stood at 53.5 sen at Thursday’s midday break, valuing the group at RM3.14 billion. The stock has risen over 11% year to date.