Silk posts Q3 net loss amid gloomy oil & gas industry

PETALING JAYA: Silk Holdings Bhd saw a net loss of RM16.63 million for the third quarter ended Sept 30, 2016, as it has been adversely affected by the continuing negative sentiment in the oil and gas industry.

It saw a revenue of RM35.84 million in the quarter.

In the nine months period, it posted a net loss of RM41.26 million against revenue of RM123.96 million.

Following the proposed disposal of the highway division, the oil and gas division becomes the predominant contributor to the group, contributing 82% of the group’s revenue for the quarter.

“The sentiment within the industry however, continues to remain weak following the global slowdown as a result of market over-supply of oil and gas. Despite nearly 80% recovery in the oil price since the lowest position in January 2016, the oil and gas activities have remained sluggish,” Silk said in its financial report.

The group has changed its financial year end from July 31 to Dec 31 effective from the financial period ended Dec 31, 2015. The current financial period under review covers three months period from July 1 to Sept 30, 2016 and represents the third period subsequent to the change of the group’s financial year end.

Accordingly, no comparative results and cash flow are presented.