Handal Resources’ Q2 profit dips 11.53%

PETALING JAYA: Handal Resources Bhd's net profit for the second quarter ended June 30, 2014 declined 11.53% to RM698,000 from RM789,000 in the previous corresponding period, mainly due to higher tax expenses.
However, its net profit for the six-month period surged 458.48% from RM224,000 to RM1.25 million, thanks to favourable product mix and improved cost efficiency.
Revenue for the second quarter and half-year period, meanwhile, rose 19.12% and 20.25% to RM25.66 million and RM49.64 million respectively.
In a filing with the stock exchange, Handal Resources, an integrated offshore crane services provider and fabricator, said the higher tax expenses were a result of higher tax charge to accounting for deferred tax for tax allowance enjoyed on intellectual property rights.
The firm has an order book worth RM264 million at hand, which would keep it busy for another four years.
Commenting on the outlook, Handal Resources will continue to invest in new business activities so as to sustain growth as the demand for the oil and gas support services will remain healthy in the foreseeable future.