HANDAL Energy Bhd, an energy solutions and services provider to the oil and gas industry, has returned to the black in its financial year ended June 30, 2021 for the first time since FY2016.
The company posted a modest net profit of RM2.77 mil over a net loss of RM26.4 mil in the same period last year.
For its 4Q FY6/2021, Handal saw its revenue surged RM25.8 mil or 61% year-on-year (yoy) from RM16.02 mil previously.
Fuelled by new contracts, the positive financial trajectory enabled the group to record a net profit of RM900,000 for the quarter under review from a net loss position of RM19.68 mil in 4Q FY6/2020.
The improvement in revenue for the quarter under review was due to the pipeline engineering services segment which contributed circa 58.8% or RM15.17 mil, followed by the integrated crane services segment with 36.9% or RM9.51 mil to its total revenue.
The increase in business from the pipeline engineering services segment was mainly contributed by the pipeline isolation and operational pigging work while the improvement of integrated crane services segment was backed by the yearly overhaul maintenance services.
“The recovery of Handal has been progressing well and it is encouraging to witness the return to profitability where we have broken our six-year streak of losses which is a strong testament to the management’s business turnaround strategies,” commented Handal’s group managing director Sunildeep Dhaliwal.
“We are proud that all our efforts during the financial year are now bearing fruit, thanks to the group’s operational excellence processes as part of our turnaround drive that has resulted in successful delivery despite the global challenges due to the pandemic.”
To align the business to market realities, Sunildeep noted that Handal has taken several measures, including cost optimisation measures and cash flow management as well as fundraising initiatives to meet challenges posed by the pandemic head-on.
Looking ahead, he said Handal remains focused on implementing plans that will ensure business sustainability and profitability with more project tenders in the pipeline.
“We remain confident and determined to continue our efforts to improve our bottom line in the coming quarters,” added Sunildeep.
At the close of yesterday’s trading, Handal was up 0.5 sen or 2.38% to 21.5 sen with 60,000 shares traded, thus valuing the company at RM50 mil. – Aug 26, 2021
