Wednesday, November 16, 2011

Tanjung Offshore posts net loss RM429,000 in 3Q

KUALA LUMPUR (Nov 16): TANJUNG OFFSHORE BHD [] swung into the red with net losses of RM429,000 in the third quarter ended Sept 30, 2011 compared with net profit of RM807,000 a year ago.

It said on Wednesday that revenue fell 14.3% to RM117.64 million from RM137.25 million a year ago, Loss per share was 0.15 sen compared with earnings per share of 0.29 sen.

'The reduction in revenue is due to the slowdown in business activities for the engineering equipment division.'' The group registered a loss in the current quarter due to impairment of receivables and higher costs incurred in certain engineering equipment packages,' it said.

For the nine months ended Sept 30, its net profit fell 51.9% to RM3.42 million from RM7.12 million a year ago while revenue was marginally lower at RM401.33 million compared with RM401.95 million.

Tanjung Offshore had borrowings totaling RM560.53 million.

'The board of directors of Tanjung is cautiously optimistic of the prospects of oil and gas industry in Malaysia and the region as the market remains fragmented and competitive.'' Whilst we are experiencing a more robust demand for our offshore support vessels, we are undertaking a business rationalisation exercise for the non-marine division so as to reduce costs and seek strategic growth within our core business divisions,' it said.

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