banner

 RSS FeedEmail This Print This Financials

Quarterly Report For The Financial Period Ended 30 June 2017

Financials Archive

Get Adobe Reader Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.

Unaudited Condensed Consolidated Statement Of Profit Or Loss
For The Quarter And Year-To-Date Ended 30 June 2017

 Income Statement

Condensed Consolidated Statement Of Financial Position
As At 30 June 2017

Financial Position

Review of performance of the Company and its principal subsidiaries

(a) Financial review for current quarter and financial year to date

Review of performance

2Q 2017 vs 2Q 2016

For the quarter ended 30 June 2017, the Group recorded revenue of RM34.1 million reduced by 15% compared to corresponding quarter of the previous year mainly attributed to drop in vessel charter income.

The Group recorded loss before tax of RM7.8 million in the current quarter against loss of RM9.7 million in the corresponding quarter of preceding year mainly due to the reduction in administration expenses with the cost rationalisation implemented last year and also the interest cost as term loans are paid down.

Shipbuilding Division
Shipbuilding division recorded revenue of RM20.3 million for the current quarter, slightly lower than corresponding quarter of the previous financial year by 5%. Shipbuilding Division sold and delivered one vessel in 2Q 2017 and 2Q 2016 respectively.

Ship Charter Division
Revenue of ship charter division decreased by 27% or RM5.1 million. The unfavourable variance was mainly due to drop in short term charters.

1H 2017 vs 1H 2016

The group recorded revenue of RM46.5 million for 1H 2017 as compared to RM95.9 million for 1H 2016, resulted in negative variance of 52% due to the protracted downturn for offshore marine support vessels.

However despite significant drop in the revenue, the Group recorded loss before tax of RM18.2 million for 1H 2017 slightly lower than previous corresponding period by RM508,000 or 3%.

Shipbuilding Division
Shipbuilding division recorded revenue of RM20.6 million for 1H 2017, lower than 1H 2016 by 66% or RM39.2 million. Shipbuilding Division only sold and delivered one vessel in 1H 2017 whereas 3 vessels were sold to external clients in 1H 2016.

Ship Charter Division
Revenue of ship charter division decreased by 28% or RM10.2 million. The unfavourable variance was mainly due to drop in short term charters and low utilisation of vessels.

Commentary on prospects

Oil price has stabilized to between USD48 to USD52 per barrel in recent months. The outlook seems to have improved slightly with increased activities for offshore projects. Contract tenures are still mostly short term as oil companies have yet to increase the offshore exploration, seismic, drilling and production activities significantly. Although there is only marginal increase in actual awards, the group managed to secure a long term charter during the quarter and increase in short term charters has boosted utilization rate of the group's fleet by 14% compared to 1Q2017. If this trend continues, the outlook will be brighter for the offshore marine segments.

The Group will continue it's emphasis on its core activities of ship building, ship charter and ship repair in a less crowded market space. The Board is cautiously optimistic that demand for offshore marine support vessels will improve with further increase expenditure in offshore oil field development and maintenance work by the oil majors. To prepare for the eventual upturn in the market, the group will also be forming strategic alliances and partnership to capture the market share. The Board also cautioned that notwithstanding that, any significant uptick is still some time away. Internally, with the ongoing initiatives in costs rationalization we believe the Group is well positioned to tide over the current business challenges.