Bumi Armada Bhd has sold one of its floating production storage offloading (FPSO) vessels, Armada Claire, for US$20 million (RM88.9 million), pocketing a divestment gain of US$12 million in financial results for the second quarter ending June 30, 2023 (2QFY2023).
Bumi Armada, which is 34.7%-controlled by tycoon T Ananda Krishnan, said in a stock exchange filing on Tuesday (April 25) that the sale proceeds were received by its wholly-owned subsidiary Armada Balnaves Pte Ltd last week, and will be applied towards a reduction of its corporate debt.
The divestment came after Bumi Armada lost a six-year legal battle in Australia last year against former client Woodside Energy Julimar Pty Ltd (WEJ), which terminated a charter contract worth RM1.46 billion for Armada Claire in 2016.
Bumi Armada has yet to release its 1QFY2023 results. It reported a 27.6% increase in net profit for FY2022 to RM732.41 million, from RM574.07 million in FY2021, thanks to higher contribution from its Armada Kraken FPSO.
Revenue grew 11% to RM2.41 billion from RM2.16 billion in FY2021.
Shares of Bumi Armada closed one sen or 1.5% higher at 69.5 sen, giving the group a market capitalisation of RM4.11 billion.