Oil slump, Covid-19 hiccups push Petra Energy into the red after five profitable quarters

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KUALA LUMPUR (May 15): After five profitable quarters, Petra Energy Bhd has turned into the red in its latest quarter, as it faced the brunt of upstream activities revision amid the recent oil price crash and the Covid-19 outbreak.

The double whammy resulted in a net loss of RM20.75 million, or loss per share of 6.46 sen, in the first quarter ended March 31, 2020, the group said in an exchange filing.

This compares with a net profit of RM1.72 million or earnings per share of 0.53 sen in the corresponding quarter a year ago.

This came about as the oil and gas services group reported a lower revenue, and also took on losses from its associates.

Quarterly revenue fell 35.29% to RM72.39 million, from RM111.85 million previously.

“This is mainly due to deferment in the client’s activities executed for hook-up and commissioning (HUC) and topside major maintenance (TMM) contracts, revision of activities budget by the client, coupled with delay in mobilisation of the group’s marine assets in view of the global Covid-19 pandemic and decline in oil prices throughout the quarter,” said Petra Energy.

Anticipating a prolonged and slow industry recovery, the group said it is exploring new opportunities in the energy sector, while continuing to manage costs and improve its job execution.

Shares in Petra Energy rose 6.5 sen or 8.28% to close at 85 sen, valuing the group at RM273.49 million.