Icon Offshore's earnings plummet 90.4% due to higher cost of sales

November 24, 2017 | By | Reply More

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PETALING JAYA: Icon Offshore Bhd’s net profit plunged 90.4% to RM205,000 for the third quarter ended September 30, 2017 versus RM2.15 million in the previous corresponding period, dragged down by higher cost of sales arising from additional cost of new accommodation work barge vessel.

Its revenue declined 7.7% from RM63 million to RM58.13 million, due to lower average daily charter rates despite higher utilisation rate of 68.5%.

Icon Offshore’s nine-month net loss widened from RM2.24 million to RM12.97 million, while revenue dropped 11.1% from RM173.71 million to RM154.47 million.

Looking ahead, the group said it continues to focus on securing new contracts and maximising utilisation rates through competitive tendering for domestic and regional contracts, as well as leveraging on its expanded presence in Brunei.

“The upstream exploration and production activities in Malaysia is expected to continue to be volatile and underpin the demand for OSV. The Group continues to work on conserving cash and reducing cost to improve its business liquidity and competitiveness.”

In view of this, Icon Offshore said it remains focused on improvement initiatives, liquidity and competitiveness.

The stock was unchanged at 25 sen on some 944,000 shares done.

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