Barakah Offshore Q2 results fall into the red

PETALING JAYA: Barakah Offshore Petroleum Bhd fell deep into the red with a net loss of RM82.11 million in the second quarter ended June 30, against a net profit of RM7.21 million registered in the same quarter a year ago, on lower contribution from the installation and construction services division.
This was on a 61.56% fall in revenue for the quarter under review to RM52.63 million from RM136.93 million last year.
"The outlook for the oil and gas industry is expected to remain challenging over the short to medium term, despite the slight improvement of the oil price. Hence, the group's outlook for the remaining second half of the financial year 2017 is expected to remain challenging, due to the continued low number of project rollouts by the major oil and gas players domestically, especially under the Transportation and Installation (T&I) services," its board of directors said in a Bursa Malaysia filing.
The group, which had an outstanding orderbook value of RM538.98 million as at August 18, also said that it will continue to pursue new opportunities both domestically and internationally, while also taking steps to improve on operational efficiency.
The group registered a net loss of RM86.71 million for the first six months of the current financial year, against a profit of RM8.48 million for the same period last year.
Barakah's revenue for the cumulative period also fell by 46.11% to RM129.47 million from RM240.26 million.
Barakah's shares fell 9.71% to 46.5 sen with some 924,700 shares changing hands. Its market capitalisation stood at RM421.05 million.