Oil and gas company confident of positive outlook on tightening vessel supply

  • Energy
  • Monday, 25 Nov 2019

Higher utilisation: File picture shows an anchor handling vessel. Perdana said the group’s vessel utilisation level rose to 91% in the third quarter.

KUCHING: Marine vessel charterer Perdana Petroleum Bhd sees the tightening of vessel supply in the market to yield stronger charter rates.

This, said the company, would further boost its financial performance which has already benefited from increased utilisation rate of its fleet of vessels. “We remain hopeful of winning some longer term contracts with certain oil majors to ensure a clearer earnings visibility,” it added.

Perdana said the group’s vessel utilisation level rose to 91% in third quarter to Sept 30, 2019 (3Q2019) from 79% and 36% recorded in 2Q2019 and 1Q2019, respectively.

The group owns a fleet of 16 vessels, comprising eight anchor handling tug/supply (AHTs), six accommodation work barges and two workboats. A higher number of these vessels has been earmarked for DAYANG ENTERPRISE HOLDINGS BHD, which is the Perdana’s single largest shareholder with a 60.48% stake, for the latter’s offshore maintenance and hook-up contracts with various oil majors.

The higher utilisation rate of vessels boosted Perdana’s group revenue to RM87.4mil in 3Q2019 against RM61.2mil in 3Q2018 or an increase of RM26.2mil or 43%.

The group’s net profit surged to RM18.1mil from RM6.53mil during the same period, including a one-off gain of RM10.6mil from the acquisition of 100% equity interest in Mount Santubong Ltd from NFC Shipping Fund C LLC by wholly-owned subsidiary Perdana Jupiter Ltd for US$1 four months ago. Mount Santubong then owned two AHTs, which were leased to Perdana Jupiter with an option to buy.

“Perdana is excited about its third quarter performance as the period was its highest quarterly revenue since 2014 and one of the best quarters in the company’s history despite the relatively low oil prices.

“The encouraging financial performance has further reinforced our view that the outlook in the second half of 2019 will be better as the offshore support vessel market is now showing signs of a sustained recovery.

“We firmly believe that the worst is behind us now, and this impressive set of quarterly results is a strong testimony of our unweavering pursuit to improve the group’s performance,” it added in notes to its latest financials. According to Perdana, the company’s synergistic collaboration with Dayang remains a cornerstone of its significant improvement in earnings.

Perdana,which has massive borrowings of some RM602mil as at Sept 30, 2019 (RM822mil at end-2018), said its long-awaited comprehensive debt restructuring exercise is currently entering the final stage.

The company is undertaking a rights issue of redeemable convertible preference shares (RCPS) corporate exercise that would raise a minimium of RM455mil and maximium of RM506mil. “We are looking forward to the completion of this corporate exercise,which will enable the group to start on a clean slate and to convincingly deliver a much better financial performance going forward,” said Perdana.
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