Perisai Petroleum expects H2 rebound

KUALA LUMPUR: Perisai Petroleum Teknologi Bhd, which posted a RM3 million net loss in its first quarter ended March 31, 2014, expects to perform better in the second half of the year by securing more charter contracts.
Managing director Izzet Ishak said the firm is in talks with a number of potential customers from the Asean region for its mobile operating production unit (MOPU), Rubicone, and derrick lay barge, Enterprise 3.
"We're waiting decision from customers...we hope to get it soon...once secured, we expect our performance will rebound," he told a press conference after the company's AGM here yesterday.
He added that the upstream oil and gas provider is talking to three to four potential customers for each of its assets, where the Rubicone and Enterprise 3 are expected to secure longer and shorter term contracts, respectively.
For the financial year ended Dec 31, 2013 (FY13), Perisai's net profit dropped 69.38% to RM36.39 million from RM118.83 million a year ago, mainly due to its assets coming to the end of their charters in the later part of the year.
Meanwhile, its first quarter of 2014 registered a net loss of RM2.99 million against a net profit of RM23.68 million in the corresponding period.
Izzet said the firm is not looking for expansion or acquisition plans at the moment as it has already committed nearly RM2 billion capital expenditure (capex) on its drilling division over the next three years.
The allocated capex will be used for three drilling rigs with RM640 million each, of which one of them will take delivery very soon, while another two are scheduled for delivery in 2015 and 2016.
He also said Perisai will add another offshore support vessel (OSV) by the third quarter, bringing the total OSV at hand to nine.
Commenting on charter rates, Izzet stressed that the rates are stable, supported by healthy demand for oil and gas services.
"The market is positive, we're not seeing any weakening neither seeing big increases, the rates remain stable," he said.
Despite geopolitical tension in the Middle East, he believes oil prices will remain at the current level of above US$100 (RM322.90) per barrel.
"As long as oil prices remain at this level, market demand will healthy," Izzet added.