KUALA LUMPUR (Oct 12): Coastal Contracts Bhd’s share price continued to rise on Tuesday (Oct 12) after hitting limit up during Monday’s trading session.
The counter, which rose as much as 15 sen or 12.5% to RM1.35, finished at RM1.25 — still up 5 sen or 4.2% from Monday's close — giving the company a market capitalisation of RM669 million.
Coastal Contracts is an integrated marine oil and gas (O&G) service and solutions provider. According to its website, it owns an extensive range of new-build to modern offshore assets capable of supporting all phases of the offshore O&G value chain.
It also owns and operates two shipyards that cover over 97 acres (about 39.25 hectares) of land in Sandakan, Sabah.
The interest in Coastal Contracts shares came amid positive sentiment among O&G stocks as crude oil prices surpassed US$80 (about RM333.76) per barrel, rising more than 60% year to date amid supply constraints and increasing demand on account of the reopening of the economy.
Brent crude prices stood at US$83.61 per barrel on Monday.
Last week, the company announced on Bursa Malaysia that it was seeking the approval of its shareholders to renew its share buy-back authority in the upcoming annual general meeting.
It is worth noting that the company has been buying back its shares since June and spent a total RM1.05 million to buy back 1.36 million shares between June and October.
As of Oct 7, its cumulative net outstanding treasury shares stood at 12.8 million, compared to its adjusted issued shares of 535.35 million.
For the fourth quarter ended June 30, 2021 (4QFY21), the shipbuilder returned to the black with a net profit of RM19.3 million, compared to a net loss of RM170.37 million a year ago, as inventory write-down and impairment loss on receivables weighed down on its results.
Revenue for the quarter increased 5.8% year-on-year to RM49.27 million, from RM46.58 million previously, boosted by full recognition of the contribution from the newly acquired liftboat chartering business commencing in the quarter under review.
As for the financial year ended June 30, 2021 (FY21), the group posted an annual net profit of RM32.71 million or 6.24 sen per share versus an annual loss of RM105.05 million or loss per share of 19.88 sen for FY20.
However, full-year revenue dropped 23.5% to RM161.57 million from RM211.08 million for FY20.