KUALA LUMPUR (Nov 22): Offshore oil-and-gas services firm Bumi Armada Bhd (KL:ARMADA) said on Friday its third quarter net profit rose 19% from a year earlier as operating margins expanded with lower costs.
Net profit for the three months ended Sept 30, 2024 (3QFY2024) was RM211.33 million, or 3.57 sen per share, Bumi Armada said in an exchange filing. Revenue for the period edged up 5.2% year-on-year to RM551.86 million.
The future firm vessel order book amounted to RM10.2 billion at the end of September, with optional extensions worth up to RM9.5 billion, said Bumi Armada.
“We are pursuing new opportunities in targeted markets,” said the company which mainly provides floating, production, storage and offloading (FPSO) vessels, floating gas services, and subsea construction assets.
The company did not provide an update on Friday on the proposed merger with MISC Bhd’s (KL:MISC) offshore business. Earlier this month, Bumi Armada signed a non-binding pact that would be valid for nine months with MISC to explore the merger.
Bumi Armada also reiterated that it may book non-cash impairments going forward with accounting adjustments. The company did not declare any dividend for the quarter.
For its first nine months, net profit was RM717.83 million, an increase of 44% when compared to the same period last year, mainly on higher contributions from Armada Kraken FPSO and Armada Olombendo FPSO. Revenue for the period rose 17% to RM1.77 billion.
Following the results announcement, shares of Bumi Armada were unchanged at 54 sen as trading resumed after the midday break. At the last price, the company has a market capitalisation of RM3.2 billion.