KUCHING: Perdana Petroleum Bhd (PPB) has delivered strong group net profit of RM75.8 million in third quarter ended September 30, 2024 (3Q2024), an increase of about RM53 million (+232%) over RM22.76 million recorded in 3Q2023, thanks to higher vessel utilisation and improved daily charter rates for these vessels.
Group revenue climbed to RM127.3 million (3Q2023:RM103.9 million) or up by RM23.35 million (+23%) during the same period.
This pushed up company’s earnings per share to 3.41sen from 1.03sen
PPB said in 3Q2024, vessel utilisation rate increased to 78 per cent from 76 per cent in 3Q2023.
As a leading provider of offshore marine support services in Malaysia, PPB group offers a wide range of vessels to support the exploration, development and production of oil and gas.
“The shortage of offshore support vessels for offshore production and operation activities continued to be the main reason for the higher demand and improved daily charter rates (DCR), for both own and third-party vessels. Revenue contributed by third-party vessels in the current quarter was 27 per cent higher than that achieved last year.
“The profit before tax of RM104.9 million for the current quarter was more than three times higher than the profit of RM30.4 million registered in the corresponding quarter. This was achieved mainly on account of higher (vessel) utilisation rates and a much-improved DCR coupled with a much higher unrealised foreign exchange gain of RM49.6 million in the current quarter as compared to an exchange loss of RM1.0 million in the corresponding quarter due to the strengthening of Malaysian ringgit (against US dollar).
“The profit before tax and before the unrealised foreign exchange stood at RM55.3 million, 76.4 per cent higher than the RM31.4 million achieved in the corresponding quarter.
“The profit before tax of RM75.8 million in the current quarter was arrived at after taking into account tax expenses amounting to RM29.1 million versus RM7.7 million incurred in the corresponding quarter,” added the company.
The 3Q2024 financial results were also a much improvement compared to the immediate preceding quarter (2Q2024) when PPB group net profit was RM34.7 million (3Q2024:RM75.8 million) or an increase of RM41.1 million (+118%). In 2Q2024, group revenue was slightly lower at RM124.6 million (RM127.3 million).
PPB attributed the higher revenue in the current quarter to better DCR coupled with higher income generated for chargeable ancillary services (mainly catering income) which grew by 74 per cent. “Revenue would have been higher if not for the lower vessel utilisation rate (78% vs 89% in 2Q2024).”
During the January-September 2024 period (9m2024), PPB recorded group net profit of RM116.6 million, which was five times higher than RM23.1 million registered in 9m2023. During the same period, group revenue jumped to RM351.1 million from RM215.2 million or up by RM135.9 million (+63%).
PPB said the revenue growth in 9m2024 was the result of much improved DCR and better vessel utilisation rate of 76 per cent as compared to 59 per cent in 9m2023.
In addition, third-party chartering activities recorded revenue that more than doubled that achieved in 9m2023.
“The group posted a higher profit before tax of RM159.7 million for the financial period ended 30 September 2014 as compared to a profit before tax of RM34.6 million achieved for the same period of last year.
“The better profit was achieved on the back of higher vessel utilisation rates and higher daily charter rates, which gave rise to better margins from vessel chartering, and a higher realised/unrealised foreign exchange gain of RM40.1 million against a loss of RM17.9 million last year,” it added.
PPB’s managing director Jamalludin Obeng said the offshore activities for 3Q2024 were still robust, which translated into higher vessel utilisation amidst the tight supply of offshore support vessels (OSVs).
He said the improved daily charter rates for OSVs also contributed to the group’s good financial performance.
“The outlook for the oil and gas sector remains strong with Petronas’ continuous commitment to support the sector, evidenced by the announcement of the award of contracts for integrated well continuity services (IWCS) and maintenance, construction and modification (MCM) to several oil and gas services equipment (OGSE) companies,” he added in a press release.
PPB said although the OSV segment saw higher utilisation and charter rates up to 3Q2024,the group is still cautiously optimistic due to the current geopolitical dynamics, especially the Middle East tension, the uncertainty of US dollar/ringgit exchange rates as well as rising inflation and interest rates.
Jamalludin said in view of these factors, the group will manage operations prudently to ensure long-term sustainability.
