Stock With Momentum: Icon Offshore

This article first appeared in The Edge Financial Daily, on January 7, 2020.
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Icon Offshore Bhd (-ve)

TRading of shares in Icon Offshore Bhd (fundamental: 0/3, valuation: 0.3/3), which closed half a sen or 9.09% higher at six sen yesterday, made it to our Stocks with Momentum list for the first time since early October 2018.

At the closing bell, the offshore support vessel player recorded a total trading volume of 56.84 million shares, over 12 times than the average 4.64 million shares it recorded in the past 200 days. The loss-making company aims to turn profitable by the 1Q of this year if its shareholders back its cash call exercise aimed at slashing its debt by over a third, to help strengthen its balance sheet, according to managing director Datuk Seri Hadian Hashim.

Hadian said the focus will then shift to rejigging its business model, while squeezing efficiencies to stay competitive.

In its FY18, Icon Offshore impaired RM419.9 million of its fleet’s net book value. That led to a net loss of RM449 million on a revenue of RM199.7 million, its biggest full-year loss amid record low revenue. The group has an order book of RM650 million.