PETALING JAYA: Bumi Armada Bhd, which was slapped with an unusual market activity (UMA) query on Friday, said the sharp fall in its share price could be attributed to recent announcements, in particular an internal memorandum which highlighted the group’s need to reduce cash outflow and limit efforts to pursue new work.
Between Nov 16 and last Friday, Bumi Armada’s share price fell 52.4% or 18 sen. Yesterday however, the group share price closed 3.5 sen or almost 22% higher at 19.5 sen, with some 318 million shares traded, making it the most actively traded stock of the day.
Bumi Armada said an internal memorandum issued by the group’s CEO to employees on Nov 27 where the CEO stated, among other things, despite the group’s concerted efforts to fundamentally improve its financial situation, the group has not made substantial progress with the financial parties involved resulting in it being forced to drastically reduce the group’s cash outflow and limit the group’s efforts to pursue new work.
Bumi Armada also highlighted the group was focusing on strengthening its overall balance sheet and working with lenders to put in place a refinancing of the group’s US$500m (RM2.1 billion) debt.
