KUALA LUMPUR (Feb 28): Bumi Armada Bhd's net profit for the financial year ended Dec 31, 2023 (FY2023) fell 45% to RM332.06 million, from RM732.41 million a year earlier, mainly due to lower contributions from the Armada Kraken floating, production, storage and offloading (FPSO) unit.

In a bourse filing on Wednesday, Bumi Armada said revenue for the year dipped to RM2.13 billion, from RM2.41 billion for FY2022.

Earnings per slipped to 5.61 sen from 12.38 sen. The company did not declare any dividend for the latest quarter.

For the quarter ended Dec 31, 2023 (4QFY2023), Bumi Armada posted a net loss of RM165.49 million, versus a net profit of RM210.68 million a year ago, on the back of revenue of RM622.98 million against RM605.03 million for 4QFY2022.

In a separate statement, the company said quarterly operating profit before impairment improved to RM386.3 million, with net operating cash flow of RM210.8 million generated.

It said a net profit of RM332.1 million was recorded for FY2023, while cash generation remained strong with annual cash flow from operating activities of RM988.6 million.

Bumi Armada chief executive officer Gary Christenson said the company's vessels, particularly the Armada Kraken FPSO, performed well during the latest quarter, despite recognition of non-cash  impairment of PPE (property, plant, and equipment), which impacted the quarterly results.

“Cash generation remained robust, which enabled us to further reduce our debt.

“Moving forward, we will continue to explore ways to enhance shareholder value, including new projects and possible corporate activities,” Christenson said.

At the midday break on Wednesday, Bumi Armada had gained 2.56% or 1.5 sen to 60 sen, with 19.4 million shares traded, valuing the group at RM3.55 billion.