24 May 2014, News Wires – Malaysia’s Bumi Armada saw profits fall during the first quarter of the year as revenues slipped on lower activity in the transport and installation segment.
The company’s profit for the three months to 31 March totalled 66.7 million ringgit ($20.8 million), down from 110.4 million ringgit over the same period last year.
The fall in profits came as first quarter revenue dropped from nearly 488.8 million ringgit in 2013 to 468.9 million ringgit in the recent quarter.
Bumi attributed the fall in revenue to lower activities in the transport and installation segment which generated 117 million ringgit, down from nearly 154.1 million ringgit a year ago.
It said lower activity in the segment was mainly due to winter conditions in the Caspian Sea, where the LukOil project is located, and the completion of the Armada Hawk charter in the previous quarter.
This offset rises in revenue from the floating production, storage and offloading segment, which generated 195.7 million ringgit, and the offshore supply vessel segment, which brought in 156.2 million ringgit.
“As we work across the globe, fluctuations in utilisations due to weather are to be expected,” Bumi chief executive Hassan Basma said.
“Today the construction fleet is back at optimum utilisation which will lead to improved results going forward.”
Bumi said it was continuing to pursue attractive prospects along the Atlantic corridor in regions such as the West Coast of Africa and Latin America, which if awarded, would significantly increase its existing total order backlog of 22.2 billion ringitt.