TAS Offshore sees lower earnings, revenue in 2QFY17

KUCHING: TAS Offshore Bhd (TAS Offshore) recorded lower earnings and revenue for the second quarter of financial year 2017 (2QFY17) ended November 2016.

The company in a filing to Bursa Malaysia on Thursday said 2QFY17 revenue plunged by 92 per cent y-o-y to RM2.92 million from RM36.33 million generated in 2QFY16. Its 2QFY17 net profit dropped by 71 per cent y-o-y to RM489,000 from RM1.67 million recorded in 2QFY16.

For the first half of financial year 2017 (1HFY17) ended November 2016, TAS Offshore said it recorded a net loss of RM642,000 as compared with a net profit of RM10.39 million in 1HFY16.

Turnover for 1HFY17 fell by 95 per cent y-o-y to RM5.17 million from RM111.85 million generated in 1HFY16.

Commenting on the group’s prospects, TAS Offshore said the decision by the Organisation of Petroleum Exporting Countries (OPEC) together with Russia, a non-OPEC member in November to reduce the production of oil, coupled with Iran’s agreeing to freeze their output had helped to push the oil price to above US$50 per barrel.

However, the company believed the boost for the oil and gas industry may be short-term as the global economy remains weak and current higher oil price may lead to an increase in shale drilling and redeployment of oil rigs in the US – putting a dent to the sustainability of the oil price movement.

In the long term, TAS Offshore envisaged the oil price to recover due to the increase in demand for energy when industrial and development activities increase in tandem with the population growth and thus, the demand for offshore support vessels to return.