Silk posts Q3 loss amid gloomy oil & gas in­dus­try

The Sun (Malaysia) - - SUNBIZ -

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.

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