KUALA LUMPUR (Feb 28): Offshore oil and gas services firm Bumi Armada Bhd (KL:ARMADA) slipped into the red in the fourth quarter ended Dec 31, 2024 (4QFY2024), impacted by an impairment on its floating production storage and offloading (FPSO) vessel Armada Kraken.

The group posted a net loss of RM83.83 million, or loss per share of 1.41 sen for the quarter, narrowing from a net loss of RM165.49 million in 4QFY2023, according to its stock exchange filing. Quarterly revenue declined 14.4% year-on-year to RM533 million from RM623 million.

Despite stable charter cash flows, the impairment on Armada Kraken FPSO in the quarter was due to straight-line depreciation and lower revenue during the optional extension period, starting in April 2025, Bumi Armada said in a separate statement.

Net impairment for the quarter under review came in at RM320.8 million.

Nonetheless, the group declared an interim dividend of one sen per share, payable on April 11.

On a quarter-on-quarter basis, Bumi Armada swung to a loss, from a net profit of RM211.3 million in the preceding quarter (3QFY2024), while revenue dipped 3.4% from RM551.9 million.

For FY2024, the group reported a net profit of RM634 million, nearly double the RM332.06 million in FY2023, driven by higher contributions from Armada Olombendo FPSO and Armada Kraken FPSO, as well as lower vessel impairments, partially offset by a gain on vessel disposals in FY2023.Revenue edged up 7.8% to RM2.3 billion, from RM2.1 billion.

As at end-4QFY2024, Bumi Armada’s firm vessel order book stood at RM10.4 billion, with additional optional extensions of up to RM10.3 billion.

The group’s cash balance rose to RM1.43 billion, with strong cash generation from operations amounting to RM530.4 million in 4QFY2024, and RM1.88 billion for the full year.

“The non-cash accounting impairment of the Armada Kraken FPSO was anticipated and does not impact our continued growth in cash reserves,” Bumi Armada chief executive officer Gary Christenson assured.

He emphasised that the group's strong financial position provides flexibility to pursue strategic corporate activities, asset acquisitions, and new projects.

At the time of writing on Friday, Bumi Armada shares were trading 1.5 sen or 2.6% lower at 56 sen, giving the company a market capitalisation of RM3.32 billion.