KUALA LUMPUR: Alam Maritim Resources Bhd's earnings for its second quarter ended June 30 dove 66.2% to RM2.38mil compared to the previous corresponding quarter, on the back of 34.6% lower revenue at RM54.98mil.
Turnover for the financial year year-to-date has dropped 43.5% to RM131.46mil compared to the first six months of last year owing to weaker performances from its business segments.
Revenue from the Offshore Support Vessels (OSV) segment in the first half of FY17 dropped 65% from the year-ago period due to lower averge utilisation rate of chartered vessels and daily charter rates.
In the Subsea Services/Offshore Installation & Construction (OIC) segment, revenue fell 17.8% compared to the previous corresponding period, mainly owing to lower contribution from OIC projects.
The group's loss before taxation in H1FY17 was RM12.06mil, a 3.2% improvement over the previous first half, due to a better performance in the OSV segment derived from a share of results of associates.
Its loss per share for the first half of the current financial year was reduced from 1.3 sen in the previous year-ago period to one sen.
Alam Maritim foresees challenging times ahead owing to the capital expenditure by the oil major, which is in line with the volume of exploration and production activities.
"Based on the recently issued Petronas Activity Outlook for 2017-2019, the average domestic capital expenditure is still expected to be invested primarily in upstream activities, but at a lower proportion," it said in its filing with Bursa Malaysia on Monday.
The company adds that its will continue to "exercise due care in managing and implementing strategies for the group's business and will ensure that shareholders’ values are strategically enhanced
from time to time".
At midday, Alam Maritim's share price was up 2.5 sen or 14.29% to 20 sen on the back of 6.83 million shares done.