Bumi Armada, a floating production company, has experienced a significant decline in its revenue stream due to a substantial reduction in the dayrate for its FPSO operating at the Kraken oilfield in the UK North Sea, owned by EnQuest. The firm charter contract for the FPSO Armada Kraken concluded in April 2025, transitioning to an annual option period charter that resulted in a 70% decrease in the charter rate.

Financial Impact

This rate reduction directly impacted the company's financial performance. For the nine months ending 30 September, operations revenue fell to 1.2 billion ringgit ($290 million), a 29% decline from the 1.7 billion ringgit generated in the same period the previous year. Net profit saw an even steeper drop of 50%, decreasing to 359 million ringgit ($86 million) from 718 million ringgit a year earlier.

Company Position and Assets

Despite the profit decline and recent unsuccessful merger discussions with MISC, the company maintained a strong cash balance and reduced its debt by $89 million during the quarter. As of the end of September 2025, Bumi Armada reported a firm backlog of 8.6 billion ringgit. The company's asset portfolio includes seven operating FPSOs, which it owns or jointly owns, located in Southeast Asia, the UK, and Africa.