Bumi Armada dissolves U.S. subsidiary citing cost reduction

Malaysian provider of offshore vessels and FPSOs Bumi Armada has dissolved its U.S. subsidiary company Bumi Armada Americas, to reduce costs.

For illustration only; A Bumi Armada FPSO/ Photo by Frans Berkelaar – Flickr / Shared under CC BY-ND 2.0 license

“Bumi Armada Berhad wishes to announce that its indirect wholly-owned subsidiary, Bumi Armada Americas Corporation, a corporation formed under the Texas Business Organization Code in the United States of America on 9 January 2017, has been dissolved on 18 February 2019 as stated in the Certificate of Fact from the Secretary of State of Texas dated 13 March 2019,” Bumi Armada said in a filing on Thursday.

The FPSO supplier formed the U.S. subsidiary in 2017, under the rationale that it wanted to develop a closer relationship with some of its key clients based in Houston. At the time, Bumi Armada said Bumi Armada Americas Corporation would be principally involved in offshore oil and gas marine services.

Come March 2019, the priorities seem to have changed. Explaining the reasons for the dissolution of the U.S. subsidiary, Bumi Armada said the move was in line with the company’s recent cost optimization exercise and is not expected to have any material impact on the company’s earnings or net assets.

Bumi Armada recently reported a net loss of for the full year 2018 of RM2.3 billion (USD 564 million), due to the impairment of Armada Kraken FPSO – operating in the UK for Enquest – and certain OSV vessels, allowances for impairment losses and higher finance costs. It also said its CEO Leon Harland would leave the company in mid-May and would be replaced by Gary Neal Christenson.

Offshore Energy Today Staff

Share this article

Follow Offshore Energy Today

Events>

<< Mar 2019 >>
MTWTFSS
25 26 27 28 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31

16th MOSCOW INTERNATIONAL OIL AND GAS EXHIBITION

The Moscow International Oil & Gas Exhibition display products like oil and gas products, oil and gas services…

read more >

Beijing International Offshore Oil & Gas Exhibition (ciooe) 2019

Beijing International Offshore Oil & Gas Exhibition (ciooe), is a regular gathering in oil & gas industry…

read more >

Lebanon International Oil & Gas Summit 2019

LIOG 2019 will delve further into the opportunities that are present in Lebanon’s energy sector…

read more >

Atyrau Oil & Gas 2019

The event program is dedicated to the most topical issues of search, exploration, development of hydrocarbons…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply