Geopolitical risks a concern for Perdana Petroleum

PETALING JAYA: Perdana Petroleum Bhd remains cautiously optimistic about its nearterm prospects despite the rise in utilisation and charter rates for the offshore chartering segment of the oil and gas industry, which will benefit the company, this year.

In its filing with Bursa Malaysia, Perdana Petroleum cited the uncertainty in outlook due to current geopolitical dynamics, coupled with rising inflation and interest rates.

The uncertainty aside, the company said it would leverage its strengths and improved efficiency to remain sustainable and relevant in the long term.

Perdana Petroleum’s net profit increased almost four-fold to Rm11.41mil for the third quarter ended Sept 30, 2022 (3Q22) from Rm3.12mil on higher vessel utilisation, which lifted its revenue, as well as lower depreciation charges. Consequently, its earnings per share rose to 0.51 sen from 0.14 sen.

During the quarter under review, the company saw its revenue increase 28.2% to Rm69.43mil from Rm54.17mil in 3Q21. This was mainly attributable to higher vessel utilisation at 82% in 3Q22 as compared to 71% in 3Q21 on account of improved charter rates, as well as a revival of work orders and engineering, procurement, construction and commissioning contracts due to the favourable oil price environment.

“The oil and gas industry rebounded in early 2022 after several years of downturn due to low oil prices and the global pandemic. According to the forecast in the Energy Information Administration’s September 2022 Energy Outlook, Brent Crude will average US$104 (RM472.60) per barrel in price in 2022,” Perdana Petroleum said.

“In Malaysia, Petroliam Nasional Bhd announced in June 2022 that their proposed capital expenditure commitment for the financial year 2022 will substantially increase to Rm60bil compared to Rm30.5bil a year earlier due to the increase of business activities, which has impacted the offshore support vessels business positively,” it explained.