KUALA LUMPUR (Feb 24): Sumatec Resources Bhd's net profit fell 98% to RM382,000 in the fourth quarter ended Dec 31, 2015 (4QFY15), from RM22.4 million a year earlier, hit by weaker oil and gas (O&G) markets.

In a statement to Bursa Malaysia today, the O&G support services provider said its revenue declined to RM6.1 million, from RM28.81 million.

"This was mainly due to the slowdown in the O&G activities, following the continued global oil price crisis during the year. The current year decrease in income was also contributed by additional finance cost arising from fair value adjustments on long term receivables," Sumatec said.

For the full year, net profit dropped to RM38.61 million, from RM48.9 million a year earlier. Revenue fell to RM62.59 million, from RM81.12 million.

Looking ahead, the company said it would cut cost to ensure profitability.
"Additionally, the board will exercise extra caution in evaluating future investments," Sumatec said.

At 5pm today, Sumatec shares closed unchanged at 11.5 sen, giving the company a market capitalisation of RM403.7 million. The stock saw some five million shares traded.