KUALA LUMPUR (Feb 28): Icon Offshore Bhd posted record fourth quarter and full-year net profits for the year ended Dec 31, 2022 (FY2022) after a hefty net gain of RM196.3 million from the disposal of its sole jack-up rig.
The oil and gas service provider’s net profit for 4QFY2022 was up by 32 times to RM153.6 million from RM4.8 million a year earlier. Earnings per share (EPS) rose to 5.68 sen from 0.18 sen.
For FY2022 as a whole, net profit rose by more than seven times to RM171.56 million from RM22.7 million in the previous year. Full-year EPS grew to 6.34 sen from 0.84 sen in FY2021, according to the group’s bourse filing.
Icon paid a special dividend of 6.7 sen per share on Dec 28, 2022 following the completion of the jack-up rig disposal to Saudi Arabia-based ADES Arabia Holding.
This is the first-ever dividend the group has paid since its listing in June 2014.
“Proceeds from disposal were utilised to pare down debt and undertake a special dividend payout,” Icon said in a statement.
Icon’s revenue slumped 28.67% to RM57.5 million in 4QFY2022, from RM80.6 million a year ealier, due to lower revenue from its offshore supply vessels (OSV) segment and drilling segment, as a result of lower utilisation.
Full-year revenue decreased 6% to RM282.6 million, from RM300.6 million in FY2021.
Icon said its balance sheet remained robust as at Dec 31, 2022, sporting a cash position of RM148.5 million while borrowings stood at RM286.4 million against shareholders' funds of RM405.7 million.
The group said that despite the rundown of several long-term contracts in FY2022, the current order book for the OSV segment stands at RM621.2 million.
Icon’s managing director Datuk Seri Hadian Hashim said the OSV segment is likely to benefit from the improved oil and gas industry outlook in Malaysia and Brunei.
“As the OSV segment continues to see more activities, we are making continuous efforts to improve operational efficiency and maximise utilisation rates, and we will continue to leverage on our continued presence in Brunei,” Hadian said in the statement.
“Going forward, the performance of the OSV segment should improve with higher daily charter rates that took effect in 3QFY2022 and higher utilisation rates,” he said.
Hadian said Icon will also pursue other viable investment opportunities which may include mergers and acquisitions and organic growth through its existing business. New business areas are also under consideration to diversify Icon’s sources of revenues and earnings.
“The company still holds the licence to operate in the offshore drilling business. We will opt for bareboat chartering of third-party rigs for tenders as part of our plan to remain active in the drilling segment,” he said.
Shares of Icon closed unchanged at 12 sen on Tuesday, valuing the group at RM312.29 million. Year to date, it has risen by three sen or 33.33%.
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https://www.theedgemarkets.com/article/icon-offshore-sell-jackup-rig-double-purchase-price