Barakah third-quarter net profit rebounds to RM1.97mil on cost-cutting exercise

KUALA LUMPUR: Barakah Offshore Petroleum Bhd has chalked up a net profit of RM1.97mil for the third quarter financial year ended Sept 30, 2016, compared with a net loss of  RM15.4mil a year ago from cost reduction exercise that was implemented since the beginning of the current financial year.

During the quarter under review, revenue was higher at RM167.2mil against RM110.9mil in the previous corresponding quarter. Earnings per share stood at 0.24sen as opposed to a loss of 1.92 sen per share.  

For the nine months, however, net profit surged by 142% to RM10.45mil from RM4.32mil previously while revenue was lower at RM407.46mil compared with RM425.72mil. 

In a filing with Bursa Malaysia, the oil and gas player added that the market condition for the industry remain tough in the immediate future resulting from continued depressed oil prices. The industry also see more intense competition that results in lower prices and margins for services.

Nevertheless, Barakah added that it believes that the group would remain resilient with the continuous new work orders secured to date. Simultaneously, the group was also actively tendering and bidding for new projects both in the local and international market.

The group’s strategic focus remains on improving operational efficiency while pursuing new business opportunities to enhance its revenue base.