SIBU: TAS Offshore Berhad sees demand for offshore support vessels slowing down this year due to the slow global recovery coupled with the drastic fall in the oil price.
Price of oil has fallen by 50% to the current price at US$50 due to the rise of shale gas industry in the United States that resulted in an oversupply of oil.
This was aggravated by Opec’s decision not to reduce production.
TAS Offshore chief executive officer Datuk Lau Nai Ho in his press statement at the company annual dinner on Friday said with the difficult situation, it would be cautious in its ventures and remained committed in its tradition of being prudent in steering the company to another bright and fruitful year.
Earlier, TAS Offshore chairman Datuk Muhammed Sepuan Anu had presented a contribution of RM3,000 to the Methodist Children Home.
However, despite this difficult situation, he said it was still able to secure two contracts for the construction of a harbour tug and a ferry with a total value of RM30.3mil.
Both vessles are currently under construction in its shipyard.
“In addition, our involvement with build-to-stock model will place the group in a favourable situation to meet the demand of vessel owners who require shorter delivery period for their vessels,” he said.
On the group’s performance for the financial year ended May 31, 2014 (FY14), he said its had recorded a revenue of RM254mil, an increase of RM116mil or 84% compared with the previous financial year.
Profit after taxation rose to RM28.8mil, an increase of RM15.3mil, or 113% compared with FY13.
“The improvement in performance was mainly due to the contribution from one of our wholly-owned subsidiaries which started its operation last year,” he announced.
As for the first quarter of 2015, Lau added that it had performed well to register a profit of RM5.3mil.
As at December 2014, its current contract on hand of approximately RM286mil would contribute positively to its profit figures for FY15 and FY16.
TAS sees slowdown in demand for offshore support vessels