KUALA LUMPUR (Aug 29): While this marks its third consecutive loss-making quarter, Icon Offshore Bhd saw its net loss narrow to RM4.66 million in the second quarter ended June 30, 2018 (2QFY18), from RM6.56 million a year ago, on lower tax expense.

In a Bursa filing, Icon Offshore said tax expense stood at RM110,000 in 2QFY18, 90.08% lower than the RM1.11 million recorded in 2QFY17.

Loss per share came in lower at 0.4 sen from 0.56 sen in the previous year. Quarterly revenue, however, slipped 3.1% to RM53.19 million from RM54.9 million in 2QFY17.

For its cumulative six months (1HFY18), the group's net loss widened slightly to RM13.29 million from RM13.18 million, despite a 5.1% increase in revenue to RM101.24 million from RM96.34 million in 1HFY17.

On prospects, the group will continue focusing on securing new contracts and maximising utilisation rates through competitive tendering for domestic and regional contracts, as well as leveraging on its continued presence in Brunei.

The upstream exploration and production activities in Malaysia are expected to gradually increase but continue to be volatile and underpin the demand for offshore support vessel (OSV), said Icon Offshore.

The group will continue working on conserving cash and reducing cost to improve its business liquidity and competitiveness, Icon Offshore added.

In a separate statement today, Icon Offshore said its orderbook stood at RM522 million as at June 30, 2018, where 98% of the orderbook is for firm period.

"The upstream exploration and production activities in Malaysia have started to pick up as can be seen from the previous lows for demand of OSV. Accordingly, the supply for spot market has tightened and utilisation rate has improved," said its acting chief executive officer Captain Hassan Ali.

Although charter rates have not improved significantly, Hassan said Icon Offshore would expect this to change, once excess capacity for OSV has been rectified by market forces.

"Nevertheless Icon Offshore remains [focused] on securing new contracts and maximising utilisation rates through competitive tendering for contracts as well as leveraging on its continued presence in Brunei.

"The group remains committed to strengthening its financial position through continuous effort in conserving cash and reducing cost to improve its business liquidity and competiveness," he added.

Icon Offshore shares closed half a sen or 3.45% lower at 14 sen today, for a market capitalisation of RM164.81 million. Year to date, the stock has fallen 39.1% from 23 sen.