KUALA LUMPUR (June 15): Troubled oil and gas (O&G) outfit Barakah Offshore Petroleum Bhd swung to a net profit of RM17.53 million for the third quarter ended March 31, 2020, from a net loss of RM41.93 million for the same period the year before, as lower costs more than offset lower revenue incurred.

Earnings per share stood at 2.1 sen, compared with a 5.05 sen loss per share previously.

Barakah posted a gross profit of RM19.24 million for the quarter, from a loss of RM26 million for the same period in the previous year, as cost of sales shrank 94%. Similarly, administrative and other expenses fell 70.5%.

The better performance was despite quarterly revenue declining 52.98% to RM23.71 million from RM50.43 million previously — as revenue more than halved for both the pipeline and commissioning services segment, and the installation and construction services.

This, the group said in its filing, was due to slow roll-out of work orders from major O&G players during the current quarter, and the completion for a project.

On prospects, Barakah maintains that it is exploring international O&G markets, while also looking into non-O&G-related industries.

"Concurrently, the group will remain focused on further improving operational efficiency and cost reduction to ensure sustainability of its business," it added.

Meanwhile, the Practice Note 17 company also said it received a restraining order from the High Court for a 90-day period from May 19, 2020 for its main subsidiary PBJV Group Sdn Bhd, while its debt restructuring scheme and regularisation plan are being finalised.

Barakah, which is undergoing several legal proceedings with Malaysia's O&G industry regulator Petroliam Nasional Bhd (Petronas), last reported scouting for a new buyer for its prized asset-turned-liability, the pipe-laying barge Kota Laksamana 101.

This was after Barakah pulled the plug on an initial debt restructuring scheme in August 2019, after Petronas suspended PBJV's operating licence for three years from July 8, 2019 relating to its non-performance involving underwater services for Petronas Carigali Sdn Bhd.

It effectively rendered PBJV as unable to undertake and bid for new contracts from Petronas, although contracts that are already issued will continue.

Under the now-scrapped proposal, Barakah and PBJV were supposed to receive a haircut on their debts, while Singapore's Lecca Group Pte Ltd was to be a major shareholder of Barakah and to acquire KL101 for some US$21 million in cash.

At end-March, Barakah had cash of RM42.75 million against short-term debt of RM188.55 million.

Shares in Barakah closed at two sen apiece today, valuing the group at RM16.72 million.