Malaysia's offshore energy vessels and services provider Bumi Armada has refinanced US$660m of its short-term debts to improve its balance sheet and is looking to sell some vessels.

In a statement today, the offshore energy facilities and services provider said the loans will be repayable over two and five years respectively, from the closing date of the facility agreement.

“The refinancing of the short-term corporate debt alleviates one of the group’s main current exposures. The new facility better aligns the corporate debt profile with the cash flow profile of the Group’s main floating production and operation (FPO) vessels business,” said Bumi Armada executive director and chief executive officer Leon Harland.

The Group must now focus on maximising its revenue while continuing to manage its operational costs, as well as to find additional value via asset monetisation or other structural improvements, he said.

"As part of this, the Offshore Marine Services (OMS) assets together with certain FPO vessels which are idle will be disposed of assuming commercially acceptable sale terms can be obtained. Surplus funds from operations and part of the proceeds from certain strategic initiatives including monetisation of assets and new project financing will be used to repay the Loans,” Leon added.