PETALING JAYA: Perdana Petroleum Bhd (PPB), an upstream offshore marine service provider for oil and gas (O&G) companies, saw its net loss narrow to RM8.3 million for the first quarter ended March 31, 2023. (Q1 FY2023).
While it is little consolation, this was an improvement over the RM14 million net loss posted in the corresponding quarter last year.
Loss per share also narrowed to 0.37 sen from 0.63 sen in the previous year. Revenue for the quarter improved mildly by 3% to RM29.6 million, up from RM28.8 million last year.
However, compared to the last quarter’s net profit of RM20.5 million, PPB looks worse for wear.
“The monsoon season during the first quarter of this year led to a much lower vessel utilisation rate, which was at 31% compared to the 60% utilisation rate in the last quarter of the previous year,” said PPB in its bourse filing today.
“In addition to the better utilisation rate, the reversal of an impairment loss on property, plant and equipment (PPE) of RM11.4 million also contributed to the higher profit in the preceding quarter ended Dec 31, 2022,” it added.
PPB owns and operates 15 vessels which support the exploration, development facilities’ installation, hook-up and commissioning as well as production, operations and maintenance activities for greenfield and brownfield O&G projects.
Its parent company, Dayang Enterprise Holdings Bhd owns a 63.6% stake as per the group’s annual report 2022.
“Due to its synergistic tie-up with Dayang, the ultimate holding company, about one third to half of the group’s fleet of vessels hired out is chartered to Dayang and the latter’s offshore topside maintenance operations are normally affected by bad weather at the beginning and the end of the year,” explained PPB.
Vessels not chartered to Dayang are similarly affected by the bad weather at the beginning and end of the year.
PPB said this factor has been taken into consideration in the group’s annual business plan.
At the close of trade, PPB’s share price was flat at 17 sen, giving it a market capitalisation of RM366 million.