KUCHING: Perdana Petroleum Bhd (PPB) has reported higher group revenue of RM43.2 million in second quarter ended June 30, 2022 (Q22022) from RM38.6 million in Q22021, thanks to higher vessel utilisation.
This revenue growth helped to significantly cut group net loss to RM6.54 million from RM39.2 million. Losses per share were reduced to 0.29 sen from 1.77 sen.
“The increase in revenue and gross profit (RM1.65 million) achieved in the current quarter is mainly attributable to higher vessel utilisation at 60 per cent as compared to 51 per cent in the second quarter of 2021, on account of improved charter rate and revival of work orders and EPCC (engineering, procurement, construction and commissioning) contracts that were deferred in previous years due to unfavourable oil price.
“There was no provision for impairment loss on PPE (property, plant and equipment) in the current quarter while some RM29.9 million of impairment loss was provided in the same period last year.
“This, together with lower depreciation charges (RM15.5 million vs RM20.2 million) as well as reversal of impairment loss on receivables of RM1.4 million in the current quarter contributed to the lower loss before tax of RM6.3 million for the quarter under review,” PPB said in explanatory notes to its financial results.
PPB group’s current quarter performance was also a marked improvement as compared to the immediate preceding quarter (Q12022) when the group recorded net loss of RM14 million on revenue of RM28.8 million.
“The significant increase in revenue in the current quarter is mainly due to higher vessel utilisation at 60 per cent for the second quarter as compared to 33 per cent in the first quarter of 2022. The second quarter saw an improvement in charter rate and work orders/contracts awarded from oil majors while the bad weather at the beginning of the year affected the vessel utilisation for the first quarter,” said the company.
PPB said the pre-tax loss of RM6.31 million in Q22022 has taken into account a net realised/unrealised foreign exchange loss of RM3.8 million and a reversal of impairment loss on receivables of RM1.4 million as compared to a net realised/unrealised foreign exchange gain of RM0.9 million and a net realised/unrealised foreign exchange loss of RM0.07 million in the preceding quarter.
It said the after-tax loss in the current quarter has taken into account tax expenses of RM0.2 million.
On a six-month period in 2022 (6M2022), PPB managed to narrow its group net loss to RM20.54 million from RM66.62 million in 6M2021 as revenue expanded to about RM72 million from RM55.4 million previously.
The company attributed the improved performance to higher vessel utilisation of 47 per cent in 6M2022 from 38 per cent in 6M2021, resulting from improved daily charter rate and work orders/contracts awarded from the oil majors in the current financial year to date.
On prospects going forward, PPB said according to Petronas Activity Outlook for 2022-2024, the prospect of the oil and gas industry in Malaysia looks positive and healthy.
“It is then encouraging to note that the group has registered an improved performance, narrowed the losses considerably for the second quarter of 2022 as compared to the corresponding quarter in 2021, which is an indication that the group has started to turn the corner.
“The revival of the EPCC contracts that have been deferred in previous years due to unfavourable oil price has contributed positively towards the offshore support vessels businesses as seen from the increase in vessel utilisation this year compared to 2021.
“With crude oil prices expected to remain reasonably high for the remainder of 2022, Petronas and its petroleum arrangement contractors companies are expected to undertake their planned capital expenditure, which will eventually benefit companies within the supply chain,” it added.
PPB said its board of directors remains vigilant and will continue to exercise due care and prudence in the running and administration of the group’s business.
As at June 30, 2022, the group’s borrowings had been reduced to RM61.1 million from RM67.7 million on Dec 31, 2021.
