Icon Offshore cautiously optimistic on sector’s recovery, growth outlook

PETALING JAYA: Icon Offshore Bhd remains cautiously optimistic about the industry’s recovery and the growth opportunities it presents.

Chairman and executive director Datuk Abdul Mutalib Alias said the offshore supply vessels (OSV) sector is expected to see brighter days ahead as strong demand from the Middle East pulls investments towards offshore facilities in the region.

“Meanwhile, the upstream industry remains vibrant, with numerous ongoing and upcoming projects in the pipeline,” he said in the company’s annual report.

For the domestic market, Abdul Mutalib said Petroliam Nasional Bhd is expected to invest significantly in upstream activities to sustain and improve production levels.

“Icon Offshore has prepared our assets to meet this growth in demand and this should augur well for prospects.

“The group has proactively adjusted our strategies to align with the evolving market conditions, allowing us to position ourselves for future growth opportunities.”

He added that the group will continue to leverage its expertise, fleet capabilities and strong client relationships to secure new contracts and expand the company’s market share.

“Furthermore, we will explore strategic partnerships and investments to diversify our business and enhance our competitive advantage, while ensuring we stay nimble in an increasingly dynamic environment.”

Additionally, Abdul Mutalib said the group’s top priority will be the development of human capital and talent resources to proactively prepare for new business opportunities and challenges.

“We recognise the importance of investing in our people to stay ahead in a dynamic market.

“In addition to this, we will continue our efforts to deliver strong performance and ensure a sustainable future for Icon Offshore.”

For its first quarter ended March 31, 2024 (1Q24), Icon Offshore’s net loss widened to RM23.60mil from RM4.26mil in the previous corresponding period, due to additional provision amounting to RM13.1mil related to charter of replacement vessels and impairment of receivables.

Revenue in 1Q24 dipped to RM30.54mil from RM43.33mil, mainly due to low utilisation of vessels.

The low vessel utilisation was due to late chartering stares, as a result of the monsoon season and planned maintenance, the group said in a filing on the local bourse in conjunction with its 1Q24 results.