KUALA LUMPUR (April 20): TAS Offshore Bhd suffered a net loss of RM13.4 million in its third quarter ended Feb 29, 2016 (3QFY16) compared to a net profit of RM676,000 last year due to an impairment loss on trade receivable and provision for termination of contracts, which was still disputed by the company.

Revenue for 3QFY16 plunged 77.2% to RM16.98 million from RM74.37 million a year ago, said TAS Offshore in a filing with Bursa Malaysia today.

For its nine-month period ended Feb 29, 2016 (9MFY16), the group reported a net loss of RM3.06 million as opposed to a net profit of RM10.3 million in the corresponding period last year.

For 9MFY16, revenue fell 36.2% year-on-year to RM128.8 million from RM202 million.

Moving ahead, TAS Offshore said the current range of oil price has resulted in a substantial reduction in the number of oil rigs being deployed, a drastic fall in demand for offshore support vessels and lower charter rates.

"Thus, we expect, in the short term, the demand for both platform support vessels and anchor handling tug supply vessels to remain weak. However, in the long term, we expect the oil price to recover due to the increase in demand for energy when industrial activities increase in tandem with the population growth.

"We are cautiously optimistic that in the long-term outlook the demands for both the offshore support vessels with higher technical specifications suitable for deep sea operation and offshore support vessels for the Enhanced Oil Recovery projects, which allow optimum extraction of oil resources, will return. We are positive of our prospects and remain cautious in our operation," it said.

The stock grew half a sen or 1.2% to close at 42 sen for a market capitalisation of RM72.87 million.