Barakah Offshore narrows losses in Q2

KUALA LUMPUR: Barakah Offshore Petroleum Bhd narrowed its net losses to RM15.48mil in the second quarter ended June 30, compared with a net loss of RM82.11mil in the same period a year ago. 

Its revenue for the quarter, however, rose 12% to RM59.16mil against RM52.63mil registered previously. The increase in revenue was mainly due to higher progress billings issued for the underwater services, under the installation and construction services (ICS).

Barakah said the revenue generated from pipeline and commissioning services amounted to RM46.81mil, out of which RM31.03mil was generated during the current financial quarter. 

“This is a slight decrease of 2% from the corresponding quarter of the preceding year as there were lesser number of on-going Hook-up Commissioning and maintenance works during the current financial quarter,” it said. 

Its ICS saw an increase of 34% in the revenue generated during the current financial quarter of RM28.14mil compared with RM20.94mil from the corresponding quarter of the preceding year,  mainly due to the higher progress billings issued for the underwater services.

For the first half to June 30, Barakah posted a net loss of RM35.4mil, or loss per share of 4.28 sen on revenue RM78.54mil.

Commenting on its prospects, Barakah said despite the gradual recovery of the oil and gas industry, the short term to medium term outlook for the industry remain challenging.

“The group remains committed to improve order book, increase operational efficiency, costs management and explore opportunities within the industry. This can be reflected with the recent win of contracts for maintenance, construction and modification works which are expected to contribute positively to the group over the next five years,” it said, adding that the group was also exploring various measures to strengthen and improve its financial position.