Barakah Offshore back in the black in Q3 from a year ago

PETALING JAYA: Oil and gas services provider Barakah Offshore Petroleum Bhd posted a net profit of RM1.97 million in the third quarter ended Sept 30, 2016 (Q3FY16), a turnaround from a net loss of RM15.44 million in the same period last year, on benefits from a cost-reduction exercise.

In a filing with Bursa Malaysia yesterday, the group said it expects market conditions for the industry to remain tough in the immediate future, resulting from continued depressed oil prices.
“The industry also sees more intense competition that results in lower prices and margins for services. Nevertheless, the board believes that the group would remain resilient with the continuous new work orders secured to date,” it added.
Simultaneously, it said, the group is actively tendering and bidding for new projects both in the local and international markets.
The group said its strategic focus remains on improving operational efficiency while pursuing new business opportunities to enhance its revenue base.
Revenue increased 50.8% to RM167.19 million, compared with RM110.89 million in the previous corresponding quarter, mainly due to higher revenue generated from transportation and installation activities.
For the nine-month period, its net profit more than doubled to RM10.45 million, from RM4.32 million a year ago, as a result of the cost-reduction exercise implemented since the beginning of the current financial year.
However, revenue decreased 4.3% to RM407.5 million, from RM425.7 million previously.
Barakah Offshore shares closed 1.55% or 1 sen lower at 63.5 sen yesterday, with 1.25 million units traded.