KUALA LUMPUR (June 23): Perdana Petroleum Bhd posted a narrower net loss of RM13.9 million for the first quarter ended March 31, 2020 (1QFY20), compared to a net loss of RM32.94 million a year earlier, backed by higher vessel utilisation at 64% versus 36% in 1QFY19.

This was achieved after taking into account additional allowance for impairment loss on personal protective equipment of RM10.9 million as well as foreign exchange (forex) losses of RM4.4 million, the group said in its results filing with Bursa Malaysia today.

Accordingly, losses per share also narrowed to 0.87 sen from 4.23 sen a year ago.

Quarterly revenue more than doubled to RM59.67 million from RM25.7 million previously. Perdana Petroleum said the busy activities that spilled over from last year into 1QFY20 have yielded encouraging results for the group’s vessel chartering business.

“Notwithstanding the depressed oil price environment, Perdana Petroleum registered a commendable result in the first quarter of 2020. Had we excluded the impact of exceptional items of RM10.9 million impairment loss and RM4.3 million unrealised forex loss, Perdana Petroleum would have recorded a profitable first quarter operationally which is a rare feat,” the group said.

According to the oil and gas services firm, the myriad of challenges arising from steep oil price decline and the highly contagious Covid-19 pandemic which had plunged the global economy into a recession since March, has negatively affected its business.

The business disruptions due to the Movement Control Order imposed by the government are expected to be reflected in the group’s upcoming quarterly results, it said.

“Nevertheless, we are hopeful that charter contracts will improve in the second half of 2020 as the government has gradually eased the lockdown measures and oil price has recovered significantly from the lows in April.

“We are cautiously optimistic that our streamlined operations and synergistic collaboration with Dayang group will continue to help us tide over the short-term challenges. In addition, our much improved capital structure will stand us in good stead to navigate beyond the current turmoil,” it added.

In separate filings, Perdana Petroleum announced that 74-year-old Datuk Ling Suk Kiong has resigned as executive chairman due to personal commitments.

He is replaced by Datuk Dr Abd Hapiz Abdullah, who was an independent director on the board.

The 54-year-old, who was chairman of the audit committee, was also redesignated as a member.

Taking his place is 54-year-old Datuk Mohd Jafni Mohd Alias.

Perdana Petroleum shares closed unchanged at 17.5 sen, valuing it at RM386.65 million.