KUCHING: Shipbuilder TAS Offshore Bhd has slipped into the red with group net loss to RM1.51 million for financial year ended May 31, 2022 (FY2022) from net profit of about RM1.9 million in the preceding year.
This was despite a sharp increase in group revenue to RM57.5 million from RM34.9 million year-on-year.
Losses per share stood at 0.86sen from earnings per share of 1.09sen previously.
In fourth quarter 2022 (Q42022), TAS reported improved group net profit of RM1.31 million from RM1.21 million in Q42021 as revenue surged to RM35.1 million from RM12.1 million.
As compared to Q32022 when TAS recorded group revenue of RM8.6 million, the increase of RM26.45 million or 307 per cent in the turnover in the current quarter under review compared to a year ago was due to more vessels being delivered, TAS said in explanatory notes to its financial results.
“Profit before tax for the current quarter amounting to RM1.69 million as compared with preceding quarter loss of RM1.94 million, representing an increase of RM3.63 million over the preceding quarter. The profit before tax recorded during the current quarter was mainly due to profit recognised on vessels delivered,” it added.
In the current quarter, customers from Iraq contributed the bulk of group sales or RM21.5 million, followed by Indonesia (RM14.1 million) and Malaysia (RM159,000).
In FY2022, Indonesia is the biggest revenue contributor of RM33.94 million while Iraq chipped in with RM21.9 million and Malaysia RM1.15 million as Singapore contributed RM518,000.
Commenting on prospects, TAS said the outlook for coal mining industry in Indonesia remains positive, and the demand for tugboats which are essential in transporting coal is expected to sustain.
TAS has built and delivered many tugboats for Indonesian clients over the years.
“The European Union (EU) which gets more than 40 per cent of its coal supplies from Russia, is set to fully ban coal imports from Russia by September (2022) while the United Kingdom will follow suit by end of this year. Japan and South Korea have announced similar plans.
“The mass cancellation of Russian coal has caused supply shocks and put the world into an energy crisis. Indonesia, as the world’s largest exporter by tonnage according to the International Energy Agency (IEA), is feeling the most heat in the global scramble for coal,” added the company.
TAS said the Indonesian Energy and Mineral Resources Ministry had said that Spain, Italy and the Netherlands have joined Germany in exploring options to purchase a large amount of coal from Indonesia.
According to Statistics Indonesia (BPS) data, Indonesia’s coal shipments to Germany, the Netherlands, Spain, Italy, Poland and Switzerland have increased tremendously over the first five months of 2022 from the same period in 2021.
“India, which is Indonesia’s second largest coal export destination, has also approached Indonesia to acquire more coal to meet its domestic needs.
“According to the Indonesia Coal Mining Association (APBI), the government has given the approval to increase coal production amid surging EU demand. The Indonesian Chamber of Commerce and Industry had urged the local coal producers to seize the opportunity to take advantage of rising demand and surging prices,” said TAS.
In view of the expected recovery of the global economy, the Sibu-based shipbuilder said it is optimistic about its prospects going forward.
