Handal Resources posts loss in Q2

PETALING JAYA: Handal Resources Bhd slumped into the red in the second quarter ended June 30, after recording a net loss of RM1.29 million against a net profit of RM1.65 million in the same period last year, due to lower contribution from most of its business segments in line with the difficult market condition in the oil and gas industry.

Revenue declined by 48.20% to RM11.91 million in the quarter under review against the RM22.99 million recorded in the second quarter of 2016, as a result of lower revenue from its integrated crane business, fabrication of cranes and work over project businesses.

“The group performance is expected to be challenging for the current financial year in view of the global oil supply situation continuing to influence industry outlook,” its board of directors said in a Bursa Malaysia filing.

For the first half of the year, the group registered a net loss of RM636,000 against a net profit of RM1.87 million in the same period last year. Revenue for the first six months stood at RM26.23 million which is 42.19% lower than the RM45.38 million recorded in the first half of 2016.

Handal's shares dropped by 4.54% to 21 sen with some 139,000 changing hands. Its market capitalisation stood at RM33.51 million.