“Revenue also increased 31% to RM578.86 million versus RM441.32 million previously,” it said in a filing with Bursa Malaysia today.
It said the increase in revenue was contributed by the operation division, which includes the provision of floating production storage offloading (FPSO) vessels, floating gas solutions unit, subsea construction assets and marine-related services.
For the first half of 2024 (H1 2024), the offshore production and support services provider recorded a higher net profit of RM506.5 million from RM319.78 million, and revenue appreciated to RM1.21 billion from RM985.31 million.
It was noted that the revenue for the year-to-date was influenced by the settlement of the increased operating fee for the Armada Olombendo FPSO.
Meanwhile, it said in a statement that cash flow generated from operations was particularly strong during the quarter at RM619.3 million assisted by favourable net working capital movements.
The group recorded a strong cash balance of RM1.214 billion after repayment of US$59 million (RM258.41 million) of debt during the quarter due to prudent financial management and strategic practices.
As at June 30, 2024, net current liabilities were at RM787.3 million mainly due to the classification of sukuk murabahah of RM1.5 billion and its corresponding derivative financial liabilities of RM613.8 million as current liabilities.
It said the sukuk murabahah will be refinanced with new six-year financing facilities of US$400 million (RM1.887 billion).
“Following Bank Negara Malaysia’s approval, the related financing agreements were signed on Aug 15, 2024, and the financing will be disbursed before the sukuk murabahah’s due date in September 2024,” it said.
The future firm order book at the end of Q2 2024 amounted to RM12.1 billion, with additional optional extensions of up to RM10.9 billion.
It said the increase in the order book compared to Q1 2024 is due to the Armada Sterling V FPSO achieving final acceptance on July 1, 2024, and the confirmation of the first annual option period for the Armada Kraken FPSO contract.
“Our robust cash generation enabled us to improve our balance sheet as we continue to explore potential new projects to enhance shareholder value,” said CEO Gary Christenson.
At the close of trading, Bumi Armada’s share price was up by 1.5 sen or 2.94% at 52.5 sen, giving the group a market capitalisation of RM3.11 billion.