Wednesday 31 May 2017

Barakah Offshore posts RM4.6m net loss in Q1

Barakah Offshore Petroleum Bhd registered a net loss of RM4.6 million in the first quarter (Q1) ended March 31, 2017, from a net profit of RM1.27 million in the previous corresponding quarter.

Revenue dropped 25.6% to RM76.84 million, compared with RM103.3 million in the same period last year, mainly due to lower revenue from installation and construction services (ICS).

In a filing with Bursa Malaysia, the group said ICS generated a total revenue of RM45.78 million, which is a decrease of 44.32% from the corresponding quarter.

It said this was mainly due to the completion of the transportation and installation (T&I) works which were brought forward from the previous year and no new work orders received for the T&I services during the period.

Commenting on prospects, Barakah Offshore said the group believes the financial year ending Dec 31, 2017 will continue to be a very challenging year as it is experiencing low utilisation for its main asset.

"Despite having the umbrella and long term contracts, the flow of work orders is still low and subject to clients' final decision before execution," it added.

Nevertheless, the group said it would remain resilient and continue to implement various cost cutting measures to improve its operational efficiency, and continue to explore various opportunities to expand its revenue base.