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Bumi Armada turns in $235m 2015 loss on bad debt charges

Bumi Armada saw its results turn into a loss of MYR234.6m ($55.6m) for 2015 from a profit of MYR218.7m a year ago, due to charges taken on some bad debts.

Revenue fell to MYR2.18bn from MYR2.4b previously, the company said in a stock market announcement.

Not only had fourth quarter revenue fallen 16% to MYR589m, it also took on impairment charges that led to a loss of MYR85.1m for the quarter.

These, and earlier impairments taken in the second quarter on falls in the value of selected OSV and T&I vessels, led to the full-year loss Bumi Armada explained. Excluding these charges the group would have reported profits of MYR141.9m and MYR369.7m for the fourth quarter and full-year respectively.

However, full year FPSO and floating gas solutions (FGS) revenue increased by 38% to MYR1.31bn and made up almost two-thirds of total revenue. This made up for the drops in revenue from the offshore support vessel and transport and installation businesses, which saw year-on-year revenues falling 18% and 58% respectively.

The group’s total order book as at end-December 2015 was MYR42.8bn consisting of MYR27.5bn of firm contracts and MYR15.3bn of optional extensions 

Bumi Armada ceo Chan Chee Beng said: "The market remains extremely challenging in the services segment of the offshore O&G business, highlighted by the decline in both utilisation and new chartering and contract activities in both the OSV and T&I segments. In Q4 2015, the Company made allowances for certain overdue accounts, but we will nonetheless seek to recover these amounts, as we have done in the past."

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