Barakah Offshore Q2 net profit almost doubles to RM7.21m

PETALING JAYA: Barakah Offshore Petroleum Bhd's net profit in the second quarter ended June 30, 2016 (Q2FY16) almost doubled to RM7.21 million, from RM4.64 million in the same period last year, mainly due to foreign currency fluctuations.
Revenue increased 10.6% to RM136.93 million, compared with RM123.83 million in the previous corresponding quarter, mainly due to the higher certification of work done for the pre-commissioning works in the current quarter.
For the six months period, its net profit dropped 57.2% to RM8.45 million, against RM19.76 million a year ago, while revenue decreased 23.7% to RM240.26 million, from RM314.82 million previously.
In a filing with Bursa Malaysia last Friday, Barakah said the decrease in revenue was mainly due to the reduction in revenues generated from the pipeline and hook-up commissioning services, as a result of lesser work orders received for the pre-commissioning works.
Commenting on prospects, Barakah said it expects the outlook for the oil and gas industry to remain challenging over the short to medium term, despite the slight improvement of the oil price.
Nevertheless, the group said it aims to replenish its order book through actively participating in new bids and tenders in the local and international market.
"At the same time, the group is continuously improving on its operational efficiency and optimising its cost structure," it added.
Currently, the group's orderbook stands at RM1.3 billion, which includes the secured long-term underwater services contract from Petronas Carigali Sdn Bhd announced last week.