Perdana Petroleum's Q2 results improve on higher vessel utilisation

PETALING JAYA: Perdana Petroleum Bhd reported a net profit of RM10.10 million in the second quarter ended June 30, 2018 compared with a net loss of RM77.63 million a year ago due to higher vessel utilisation.
In a filing with Bursa Malaysia, the group said vessel utilisation during the quarter was higher at 70% compared with 63% a year ago.
The earnings has also taken into account net realised/unrealised foreign exchange gain of RM25.8 million. In comparison, an impairment loss on property, plant and equipment of RM50.4 million and a net realised/unrealised foreign exchange loss of RM16.5 million were accounted for in the corresponding quarter last year.
Perdana Petroleum's revenue for the quarter rose 5.33% to RM47.59 million from RM45.18 million a year ago.
For the six months ended June 30, 2018, the group's net loss narrowed to RM56.56 million from RM123.55 million a year ago, while revenue rose marginally to RM64.36 million from RM64.11 million.
Moving forward, the group is optimistic that the issues and challenges faced by the group will be resolved sooner and together with the support of Dayang Enterprise Holdings Bhd's board, the restructuring programme undertaken by the group will hopefully improve its overall profitability.
"We believe that the business environment in 2018 will be better as the group's vessel utilisation rate is expected to improve significantly, thanks to the high number of vessels that will be earmarked for Dayang's offshore maintenance, construction and modification works and hook-up contracts with various oil majors where activities are already projected to be ramping higher," it said.
As drilling activities continue to increase, more rig moves and anchor handling works will consequently increase demand for its anchor handling tugs and supply vessels.
"We are also hopeful the higher crude oil prices would help boost the general sentiment for the oil majors and lead to more offshore support vessel chartering opportunities," it added.
In the third quarter of 2018, 14 out of 16 vessels are employed and the group remains cautiously confident that the average fleet utilisation this year will be higher than 2017.
While fleet utilisation seems to be improving, albeit mostly on spot charters and depressed charter rates, the group continues to face challenges in securing longer term contracts. It is in the midst of bidding for various long-term contracts locally and regionally.
The group is also in the midst of submitting a proposed debt restructuring scheme that will enable a renegotiation of its financing obligations. In July, Bank Negara Malaysia approved its application for assistance to mediate between the group and its creditors and it aims to submit the scheme by mid-September.