KUALA LUMUR: Bumi Armada Bhd

’s net profit for the second quarter ended June 30, 2025 (2Q 2025) declined to RM80.03 million compared to RM265.96 million recorded in the same period last year.

Revenue fell to RM407.12 million from RM578.86 million previously, the company said in a filing with Bursa Malaysia.

For the first half year ended June 30, 2025, the group recorded a lower net profit of RM262.80 million from RM506.50 million, while revenue slipped to RM881.09 million from RM1.21 billion previously.

"The operations segment revenue decreased due to lower revenue from Armada Kraken Floating Production, Storage, and Offloading (FPSO) following the commencement of annual option period charter in April 2025 with lower charter rate.

"This was also due to higher revenue from Armada Olombendo FPSO in year-to-date (YTD) 2024 resulting from resolution of outstanding issues with the charterer which includes escalation of the operating fee pursuant to the charter agreement,” it said.

Meanwhile, Bumi Armada said the group generated robust net cash flows from operating activities of RM373 million in 2Q 2025, highlighting its strong ongoing cash-generating capabilities.

"The cash balance remained in excess of RM1.4 billion despite having paid dividends to shareholders and reduced debt by US$63.4 million (US$1=RM4.23) during the quarter. The group’s orderbook at the end of 2Q 2025 amounted to RM9.1 billion, with additional optional extensions of up to RM9.2 billion,” it said.  

Bumi Armada chief executive officer Gary Christenson the results demonstrate the company’s ability to continue to generate meaningful cash flow from the excellent performance of existing fleet, albeit in light of Kraken’s reduced option period charter rate.

"Despite the lapse of the Memorandum of Understanding with MISC Bhd

, we continue to strive to capitalise on our financial strength in order to grow by bidding for new projects and exploring potential corporate activities in a disciplined manner,” he said. - Bernama