KUALA LUMPUR (Sept 29): Borneo Oil Bhd registered in its second quarter ended July 31, 2017 (2QFY17) a net profit at RM4.05 million, 6.87% lower than RM4.35 million registered a year ago.

However, the group saw a significant 98.15% drop in its quarterly revenue, from RM1.05 billion to RM19.41 millon, mostly dragged down by its mining and energy business

This brings its cumulative net profit for the first half of this financial year (1HFY17) to RM9.31 million, 38.15% down from RM15.05
million registered in 1HFY16, while revenue stood 98.32% lower at RM42.65 million, from RM2.54 billion a year ago.

In its bourse filing today, Borneo Oil said its mining and energy business segment recorded revenue of RM6.89 million, a staggering drop when compared with the RM1.03 billion turnover posted in 2QFY16.

Meanwhile, revenue for its fast food and franchise business stood at RM10.96 million, as market conditions negatively impacted its fast food business, where three of its SugarBun outlets and two of its Pezzo outlets were closed down due to poor business and a fire during the quarter.

This is in comparison with the RM13.66 million registered in the corresponding quarter a year ago.

For the quarter under review, its property and management operation division contributed RM1.55 million to its top line.

Moving forward, Borneo Oil said it had taken note of the group's overall performance and will continue to endeavour to improve in the coming quarters.

“Barring any unforeseen circumstances, the board is confident that the company will be in the correct and positive path in achieving an improved result in line with the corporate and operational plans,” it said.

At the closing bell today, the counter closed 0.5 sen or 5% lower at 9.5 sen, for a market capitalisation of RM432.92 million.