KUALA LUMPUR: Icon Offshore Bhd returned to the black with a net profit of RM20.35 mil in the first quarter ended March 31 against a net loss of RM7.64 mil in the same period last year.
Revenue rose to RM48.88 mil from RM41.76 mil previously, it said in a filing with Bursa Malaysia today.
The group recorded a net profit after tax of RM21.6 mil in the current quarter against a loss after tax of RM10.7 mil in the corresponding quarter, mainly due to an increase in gross profit of RM6.3 mil, other income of RM19.1 mil from gain on a debt restructuring exercise, and RM8.8 mil relating to waiver of interest payable upon completion of the debt restructuring.
On the outlook for the financial year ending Dec 31, 2020, Icon Offshore said the Covid-19 pandemic and reduction in crude oil price have resulted in a more volatile and challenging environment.
“The pandemic has resulted in some operational delays but this is being mitigated by the management,” it said.
As far as the reduction in crude oil price is concerned, it said as for now there is minimal impact on the contracts that have already been secured.
“The upstream exploration and production activities in Malaysia, which underpin the demand for offshore support vessels (OSV), are expected to be volatile this year,” it said.
As a significant portion of the group’s order book is long term (more than a year) in nature, this provides cash-flow stability and earnings potential.
It said the focus of the group will be on operational efficiencies, securing new contracts and maximising utilisation rate through competitive bidding for domestic and regional contracts, as well as leveraging its continued presence in Brunei.
With the completion of the corporate proposals that includes fundraising of RM247.2 mil, the group said it is in a stronger position to overcome the challenges and tough operating conditions.
“In view of this, the Board of Directors remain focused on improvement initiatives and synergistic business opportunities,” it said. – May 15, 2020, Bernama
