Handal Resources narrows losses in Q2

PETALING JAYA: Handal Resources Bhd narrowed its net losses for the second quarter ended June 30, 2018 to RM984,000 from RM1.3mil a year ago.

The improvement in its performance was on the back of higher revenue and higher operating income for the majority of business segments.

The group’s revenue for the period rose 26% year-on-year to RM14.98mil.

For the first half of the year, the group’s revenue rose 11% to RM29.1mil, and a wider pre-tax loss of RM1.2mil as compared to a loss before tax of RM0.43mil during the same period a year ago.

“This is mainly due to higher administration & operating expenses and higher depreciation & amortisation cost,” the group said in a filing with the stock exchange.

The group recently embarked on an internal restructuring exercise, which saw the entry of reputable and experienced corporate profiles, from various fields on board.

In a statement, the group said Sunildeep Singh Dhaliwal, who was appointed as group MD, was working towards strategising and implementing measures to further improve the group’s financial health.

Its initial steps to turnaround Handal include a cost rationalisation plan that will include an immediate reduction in executive directors’ pay by 30% as well as reducing other ancillary benefits resulting in estimated cost savings of RM2.5mil per annum.

The group also announced the appointment of Terry Biusing, who brings with him over 25 years of experience in the oil and gas industry as an independent director.

He is currently with Wood Group Mustang, part of Wood Plc of Aberdeen, Scotland.