Dolphin International gets new chairman, continues to post loss in 2Q

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KUALA LUMPUR (Aug 30): Dolphin International Bhd has appointed its independent non-executive director Kamaruddin Osman as independent and non-executive chairman of the group, replacing Datuk Zaiton Mohd Hassan who has resigned citing work commitment.

According to Dolphin's Annual Report 2017, Kamaruddin, 74, was appointed to his current post on May 28, 2014.

He brings with him years of experience in the palm oil industry, working for various private companies including Pineapple Cannery of Malaya Sdn Bhd, Malaysian Can Co Sdn Bhd, the Development Authority for Pahang Tenggara, Sawira Sdn Bhd and PT Ganda Prima.

In a separate filing with Bursa Malaysia today, Dolphin revealed that the group continued to post a net loss of RM2.41 million in the second quarter ended June 30, 2018 (2QFY18) from RM2.49 million a year ago. The group has been loss making since 2QFY16.

Loss per share was at 0.99 sen compared with 1.12 sen for 2QFY17.

Quarterly revenue fell 30% to RM1.48 million from RM2.12 million a year ago.

Dolphin said the decrease in 2QFY18 revenue was due to its current focus on internal group projects for the construction of biogas plant under a build, own, operate and transfer (BOOT) model and the enhancement and optimisation programme under a build, own and operate (BOO) model.

"These two assets are captured under non-current asset as work in progress for property, plant and equipment amounting to RM24.4 million," it added.

For the cumulative six months (1HFY18), the group's net loss widened to RM4.6 million from RM3.43 million a year ago, while revenue fell 27% to RM2.87 million from RM3.94 million in 1HFY17.

On prospects, Dolphin expects the group's performance for the financial year ending Dec 31, 2018 to remain challenging.

The group is implementing its new business strategy and direction to secure new projects under a BOO or BOOT model, which will be able to provide a more sustainable and consistent income stream.

"In addition, the group is also planning to diversify and improve its income source by moving into the palm oil milling market," it said.

Dolphin shares closed down 0.5 sen or 4.35% at 11 sen today, for a market value of RM26.86 million.