Shares of Bumi Armada Bhd. experienced a notable increase after the company announced that its Armada Kraken floating production storage and offloading (FPSO) vessel was nearly back at full capacity, following an unplanned shutdown. The oilfield-services company saw its shares surge as much as 8.2% and currently stand 7.1% higher at 0.53 ringgit ($0.12), reflecting an impressive gain of over 50% in the last year.
In a recent bourse filing during the midday break, Bumi Armada disclosed that the successful installation of a reconditioned hydraulic submersible pump transformer contributed to the Armada Kraken FPSO’s operational performance returning to approximately 90% of its pre-shutdown levels.
Earlier, on June 2, Bumi Armada had revealed the shutdown of the Armada Kraken FPSO due to the failure of critical hydraulic submersible pump transformers. The company anticipated a material financial impact as a result of this incident. However, as of June 21, Bumi Armada reported that the vessel’s production had reached around 60% of its pre-shutdown levels.
This recent development signifies a significant recovery for Bumi Armada’s Armada Kraken FPSO, positioning it almost back to full capacity after overcoming the challenges of the unplanned shutdown.
