Friday 29 Mar 2024
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KUALA LUMPUR (Nov 21): Offshore support vessel (OSV) fabricator Coastal Contracts Bhd saw its net profit jump 37.4% to RM54.3 million for the third financial quarter ended Sept 30, 2014 (3QFY14) from RM39.5 million a year ago, due to more favourable product mix which comprises higher-specification and higher-value OSVs.

Revenue for 3QFY14 grew 19.4% to RM232.4 million from RM194.7 million in 3QFY13. Earnings per share rose to 10.22 sen in 3QFY14 from 8.18 sen in 3QFY13.

“The group’s sturdy performance in 3QFY14 was largely spurred by scheduled upgrades and fleet renewals by asset owners, which are essential for ensuring continuity of production jobs as well as personnel safety,” said Coastal Contracts executive chairman Ng Chin Heng in a statement today.

“We recognise that dampened global oil prices may result in deferred capital expenditure by oil majors, potentially leading to a slower growth rate of newbuild OSVs. That said, we believe our long term growth prospects will remain underpinned by continued fleet renewal activity,” he added.

For the nine months period, the group's net profit rose 47.8% to RM151.7 million from RM102.6 million a year ago, while revenue grew 38.1% to RM699.5 million from RM506.6 million.

Earnings per share for 9MFY14 was higher at 29.35 sen compared with 21.25 sen a year ago.

Coastal Contracts’ total order book stood at RM2.5 billion as at Sept 30 this year. Of this total, shipbuilding or vessel sales orders constituted RM1.3 billion (to be delivered to customers up to 2015) and the remaining RM1.2 billion was for the construction and delivery of a gas compression service unit for Mexico’s national oil company Petróleos Mexicanos in the second half of 2015, together with a long term charter contract.

Meanwhile, the group is constructing two high-specification jack-up rigs equipped for harsh water environments, scheduled for delivery in the first and second half of 2015 respectively. 

It is currently in discussions with several oil and gas players for a potential charter.

Coastal Contracts shares were up two sen or 0.58% to close at RM3.46 today, giving it a market capitalisation of RM1.84 billion. Its share prices have been on a downtrend since August after hitting a peak of RM5.40.
 

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