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