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Bumi Armada Q3 profit down on lower utilisation of older OSVs

Bumi Armada Q3 profit down on lower utilisation of older OSVs
Major Malaysian OSV company Bumi Armada saw third quarter profits fall 10.7% to $108.1m from $121.2m in the previous corresponding quarter even though revenue rose $636.5m from $546.3m previously.

According to a stock market announcement, profit for the first nine months also fell to $271.3m from $342.9m in the first nine months of 2013. "Despite the decline in oil prices and uncertainty in the oil and gas industry, the past quarter has been a busy one for Bumi Armada," said ceo Hassan Basma.

Increased FPSO contributions driven by new contract awards were countered by lower year-on-year contribution from T&I on the Lukoil project in Russia and lower utilisation for Armada Hawk before their activity picked up this quarter. OSV’s contribution reflected lower utilisation of older vessels, the company said. Meanwhile Bumi Armada's OSV fleet renewal programme continues, with three Class B vessels disposed in the current year to date and seven vessels continue to be identified as held for sale.