KUALA LUMPUR (Aug 22): Oil-and-gas services firm Bumi Armada Bhd (KL:ARMADA) said on Thursday its net profit more than doubled in the second quarter from a year earlier, thanks to higher margins and contributions from Armada Kraken FPSO and Armada Olombendo.

Net profit for the three months ended June 30, 2024 (2QFY2024) was RM265.96 million, compared with RM118.77 million in the same quarter a year earlier, Bumi Armada said in an exchange filing. Revenue for the quarter rose 31% year-on-year to RM578.86 million from RM441.32 million.

“Our robust cash generation enabled us to further improve our balance sheet as we continue to explore potential new projects to enhance shareholder value,” Gary Christenson, the chief executive officer of Bumi Armada, said in a statement.

Bumi Armada’s order book at the end of June totalled RM12.1 billion, with additional optional extensions worth up to RM10.9 billion.

The company generated RM619.3 million cash from its operations during the quarter aided by “favourable net working capital movements”. At the end of June, cash balance totalled RM1.21 billion after repayment of US$59 million (RM258.36 million) of debt.

Bumi Armada also flagged that it may book impairments as the company reviews the difference between its net book value and value-in-use under straight-line accounting policy for depreciation of certain assets in FY2024.

Any impairment, however, would not affect cash flow, the company stressed.

For the first half ended June 30, 2024 (1HFY2024), net profit surged 58% to RM506.5 million from RM319.78 over the same period last year, partly due to settlement of the operating fee escalation for Armada Olombendo FPSO. Cumulative revenue rose 23% year-on-year to RM1.21 billion from RM985.31 million.

The company did not declare any dividends for the latest quarter.