KUALA LUMPUR (Oct 21): TAS Offshore Bhd reported 36.11% drop in net profit for the first quarter ended Aug 31, 2014 (1QFY15) to RM5.45 million, from RM8.53 million, despite recorded higher revenue.

Quarterly revenue jumped 157.4% to RM76.32 million from RM29.64 million in the previous corresponding quarter, underpinned by contract revenue recognised on the sale of four units of tugboat and one unit of anchor handling tug supply vessel.

Earnings per share declined to 3.1 sen, from 4.85 sen a year ago.

Going forward, TAS Offshore said the current crude oil price of about US$85 (RM277.31) per barrel will continue to spur oil majors to maintain the expenditures on exploration and particularly in production.

"The increase in demand for modern jack-up rigs entering the market will result in needs for more offshore support vessels. Thus, we expect the demand for both platform support vessels and anchor handling tug supply vessels to be strong," TAS Offshore added.

TAS Offshore is optimistic that new demand for offshore support vessels with higher technical specifications suitable for deep sea operation, will grow.

It said that demand for offshore support vessels for the Enhanced Oil Recovery projects which allow optimum extraction of oil resources, will also help to support the new offshore support vessels market.

"Our order book remains healthy and we are optimistic of our prospect, but will remain cautious in our business operation," it added.

TAS Offshore closed unchanged at 84.5 sen, with 1.03 million shares done. It has a market capitalisation of RM148.57 million.