Energy Voice | Kraken sinks Armada’s results

Malaysia’s Bumi Armada fell to a second quarter loss due to charges relating to the Kraken FPSO.

Its pre-tax losses were £110.8million, compared to a gain of £33.3m in the same period last year.

It comes following a £90.4m impairment charge for the quarter relating to the EnQuest-operated Armada Kraken FPSO in the North Sea.

The floating, production, storage and offloading vessel has been hit with delays since start-up last year.

Bumi Armada was also dealt with a much smaller impairment charge for the Armada Gema.

It comes as the firm today announced a new deal with the Kraken field partners to progress the project towards the final acceptance certificate of the FPSO.

It includes provision for Armada to pay the field partners compensation for “outstanding items” until they are completed.

In a statement, Bumi Armada said:  “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.”

 

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