Alam Maritim's Q1 net profit halved on lesser jobs for vessels

PETALING JAYA: Alam Maritim Resources Bhd's first quarter ended March 31, 2015 net profit halved on 34.7% lower profitability from its offshore supply vessels (OSV) segment primarily due to lower average utilisation rate of the vessels.
The company in its quarterly announcement yesterday announced that net profit for the quarter stood at RM8.6 million, compared with RM15.6 million in the year before.
This was on 7% lower revenue of RM73.7 million, compared with RM79.2 million for the corresponding quarter in 2014 as revenue from the OSV segment dropped 48.4% for the quarter due to lower average utilisation rate of vessels.
The group said its business outlook is influenced by the level of capital expenditure spending by the oil majors which is in line with the volume of exploration and production activities and based on the current market condition, the domestic oil and gas industry is expected to be vulnerable and volatile in the interim period due to slower project rollouts and softening charter rates.
"Despite these challenges, we believe that the sector should be able to withstand short term uncertainties and sustain with solid fundamentals in the long run, Alam Maritim said.
It added that its board will exercise due care in managing and implementing strategies for the group's business and will ensure that shareholders' value are strategically enhanced from time to time.