Perisai Petroleum Q2 results hit by charter rate discounts

PETALING JAYA: Perisai Petroleum Teknologi Bhd, which posted a second quarter net loss of RM2.68 million for the period ended June 30, 2016, said its interest cover ratio, which gauges the company's ability to make payment for the interest expense on outstanding debt, fell "slightly" below the required minimum.
The company is in talks with its bondholders on the settlement of US$700 million (RM2.8 billion) multi-currency, medium-term note maturing on Oct 3, 2016.
"In the current quarter, all covenants relating to financial ratios as applying to the group were fully complied with, with the exception of the interest cover ratio. As at the financial period ended June 30, 2016, the ratio for interest cover was slightly below the required minimum. The group has and is taking active steps in addressing this slight deviation," Perisai Petroleum said.
The company's net loss in the second quarter compares with a net profit of RM1.61 million a year ago.
In a filing with Bursa Malaysia yesterday, the company said its earnings were affected by a lower share of contribution from the results of joint ventures, particularly from the floating, production, storage and offloading unit Perisai Kamelia, as a result of a discount given on the charter rate.
It said its earnings were also affected by lower foreign exchange gain and higher finance cost.
Revenue for the quarter fell to RM53.08 million from RM53.66 million a year ago due to a discount given on the charter rate for Perisai Pacific 101 as a result of the significant drop in oil prices.
For the six months ended June 30, 2016, Perisai Petroleum posted a net loss of RM6.73 million compared with a net profit of RM8.64 million a year ago while revenue for the period fell 2.19% to RM107.97 million from RM110.39 million a year ago.
Perisai Petroleum said depressed oil prices have caused uncertainty on the outlook for demand for oil and gas assets in the short to medium term, and will remain cautious on its capital and cost management.
"Operational efficiency of the operating assets is expected to be maintained while pursuing various opportunities with respect to the Rubicone, Enterprise 3 and drilling rigs," it added.