Icon Offshore slips into the red in Q2

PETALING JAYA: Icon Offshore Bhd swung to the red registering a net loss of RM6.56 million for the second quarter ended June 30, 2017 versus a net profit of RM617,000 in the previous corresponding period, dragged down by higher taxation.
It explained that the effective tax rate for the current quarter is higher than the statutory tax rate of 24%, mainly due to recognition of under provision of deferred taxation for its foreign operation subsidiary in Brunei.
Second-quarter revenue declined 6.8% from RM58.88 million to RM54.9 million, due to lower daily charter rates despite higher vessel utilisation.
Looking ahead, Icon Offshore said the group continues to focus on securing new contracts and maximising utilisation rates through competitive tendering for domestic and regional contracts, as well as leveraging on its expanded presence in Brunei.
"The upstream exploration and production activities in Malaysia is expected to continue to be volatile and underpin the demand for offshore support vessels. The group continues to work on conserving cash and reducing cost to improve its business liquidity and competitiveness," it noted.
The group said it remains cautious on its financial results ending December 31, 2017.
For the first six months of the year, Icon Offshore's net loss widened from RM4.39 million to RM13.18 million, with revenue falling 13% from RM110.71 million to RM96.34 million.

The stock was down by half a sen to close at 21.5 sen on Friday, with some 1.36 million shares changing hands, bringing it a market capitalisation of RM253.1 million.