Friday 29 Mar 2024
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KUALA LUMPUR (Aug 30): Silk Holdings Bhd announced a net loss of RM16.9 million or 2.41 sen per share in the second quarter ended June 30, 2016 (2QFY16) on the back of RM41.2 million revenue, due to sluggish oil and gas (O&G) activities.

Its O&G division is now its main revenue contributor — contributing some 91% of the group's revenue for the quarter — following the disposal of Sistem Lingkaran Lebuhraya Kajang Sdn Bhd to WZ Satu Bhd on June 1.

In a bourse filing today, its six-month period ended June 30, 2016 (1HFY16) recorded a net loss of RM24.6 million or 3.51 sen per share, on a revenue of RM88.12 million.

There are no comparison figures as the group changed its financial year-end from July 31 to Dec 31 in mid-2015.

The group recorded net losses of RM1.1 million in the three months ended Oct 31, 2015; RM3.32 million in the two months ended Dec 31, 2015; and RM7.7 million in the first quarter ended March 31, 2016.

In a separate statement, Silk Holdings said the O&G division spearheaded by Jasa Merin Sdn Bhd is now its core contributor, but cutbacks in exploration and production activities due to weak industry performance translated to fewer charter contracts for offshore support vessel providers, which in turn led to an over-supply of vessels and reduction in charter rates.

The division recorded a revenue of RM37.6 million and loss before taxation of RM18.5 million in the current quarter, and a revenue of RM84.5 million and loss before taxation of RM27.3 million in the cumulative six-month period.

Its marine logistics division, under its wholly-owned unit Jasa Merin (Labuan) PLC, recorded a revenue of RM3.7 million during 2QFY16, but a pre-tax loss of RM3.3 million due to pre-operating expenses.

Silk Holdings executive chairman Datuk Mohd Azlan Hashim said weak oil prices may cause weaker revenue performance ahead.

"In view of the weak market conditions, the division's immediate-term prospects will continue to be challenging. The board will continue to monitor developments in this sector closely, and take proactive measure to mitigate the challenges," he said.

He added the seaborne chemical trade, in which the group's marine logistics division is focusing on, is greatly influenced by global economic development as well as industrial production growth. Nevertheless, he expects the coastal chemical vessel segment to provide stable returns.

Silk Holdings closed up half sen or 1.3% at 39 sen, valuing it at RM273.6 million.

 

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