KUALA LUMPUR: Bumi Armada Bhd’s wholly-owned subsidiary, Armada Kraken Pte Ltd (AKPL), has entered into an Amendment Agreement Number Two (AA2) with EnQuest Heather Ltd, EnQuest ENS Ltd and Nautical Petroleum Ltd in relation to the Armada Kraken Floating, Production, Storage and Offloading Vessel (FPSO)
In a filing to Bursa Malaysia, Bumi Armada said the signing of the AA2 allows AKPL and the Kraken Charterers to progress the project towards the final acceptance certificate of the FPSO in a mutually beneficial manner.
“AKPL and Kraen Charterers have agreed to mutually waive their respective rights under the Bareboat Charter that arose from certain claims. As part of these mutual waivers, AKPL agreed to pay Kraken Charterers US$15 million (about RM60 million), to be fully paid by Dec 17,” it said.
Meanwhile, Bumi Armada recorded revenue of RM654 million for the second quarter ended June 30, 2018, 5.8 per cent lower over the same period last year.
During the quarter, the group recognised an impairment of RM477.2 million and RM1.7 million for the Armada Kraken FPSO and Armada Gema respectively, as well as, net allowances for impairment losses of RM117.4 million.
As a result of these impairments, the group recorded a net loss of RM585.5 million during the quarter under review, from a net profit of RM116.6 million in the second quarter last year.
Moving forward, Bumi Armada said it would remain focused on managing costs and strengthening the balance sheet, while selectively pursuing new opportunities for 2018.