Malaysia-based Bumi Armada Berhad saw a 22% decline in its revenue in 2Q 2015, but an increase in its EBITDA.
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Image from Bumi. |
The offshore oilfield service provider's revenue decreased by 22% to US$109 million (459.1 million MYR) compared to 1Q 2014, the group’s EBITDA increased to $132 million (556.5 million MYR) in 1H 2015, a 14.6% increase over 1H 2014.
Blaming weaker revenue on lower utilization of vessels in the offshore support vessel (OSV) and transportation and installation (T&I) business units, Bumi Armada said the EBITDA increase was driven mainly by its floating production storage and offloading (FPSO) unit.
“The low oil price continues to dampen sentiment and activities in the offshore oil and gas services sector, and the market is likely to be challenging through 2016,” Chan Chee Beng, Bumi Armanda Beng executive director and acting CEO said. “While the challenges and volatility in the OSV and T&I businesses will continue for some time, the FPSO business remains robust on the back of our long-term firm contracts."
“Our new FPSO vessels will start to come onstream in 2016 and are expected to deliver the next round of strong growth for the group. We are actively monitoring the performance of all business units, and will focus on further improving the productivity and efficiency of the group, including additional cost reduction measures, as may be necessary,” he said.
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