Bumi Armada declines 5%, dips to all-time low

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KUALA LUMPUR (Nov 27): Selling pressure persisted on Bumi Armada Bhd in the morning session of Thursday, dragging the stock to its all-time low of RM1,30.

Bumi Armada fell as much as 5% after its CEO Hassan Basma and the Employees Provident Fund (EPF) pared their respective stakes in the offshore oilfield services provider and floating production storage and offloading player.

At the midday break, Bumi Armada lost 6 sen or 4.4% to RM1.30 on some 10.8 million shares done.

A filing with the stock exchange on November 24 showed Hassan had disposed 421,900 shares or 0.007% at RM1.36, and sold 1.08 million shares or 0.018% at RM1.395 in the open market.

With the disposal, Hassan who is also an executive director now holds 3 million shares or 0.05% stake in Bumi Armada.

Meanwhile, the EPF also reduced its equity holdings to 506.69 million shares or 8.64% stake in the firm.

The retirement fund had disposed 99,400 shares on November 19 and a further 569,100 shares on November 21.

Bumi Armada reported a lower net profit in third quarter as compared to previous year’s corresponding quarter despite raking larger revenue.

Its net profit fell 10.8% to RM108.1 million from RM121.2 million, while revenue grew 16.5% to RM636.5 million from RM546.3 million a year earlier, Bumi Armada said in a statement to the stock exchange on November 20.

The firm’s earnings per share was reduced to RM2.29 per share from RM2.57 per share.

The company is due to announce the execution of a vessel charter contract today after being delayed for three times.