KUCHING: Sarawak-based oil and gas (O&G) integrated support services provider, Ocean Vantage Holdings Bhd (Ocean Vantage) saw its revenue growing by 12.2 per cent to RM16.92 million in its second quarter of financial year 2020 (2QFY20).
There are no comparative figures for the preceding year’s corresponding period available as this is the second interim financial report to Bursa Malaysia Securities Bhd.
During the quarter under review, Ocean Vantage’s revenue grew 12.2 per cent compared to RM15.08 million in the preceding quarter, mainly contributed by the manpower segment arising from the charging of quarantine costs incurred during the Movement Control Order (MCO) period to its customers.
Managing director of Ocean Vantage, Kenny Ronald Ngalin said, “While we faced unparalleled challenges arising from the global pandemic and lackluster commodity prices, the shift in operating landscape has presented us various business opportunities as well.
“Over the past few months, demand for our manpower services has not been affected in Malaysia as additional support services are needed for offshore operations.
“Moreover, the closure of borders has helped local players, such as Ocean Vantage, to gain a larger share of the offshore support services pie in Malaysia, where certain segments were previously dominated by foreign players.
“It has opened the door of opportunities for us to work with and explore new business support services to our existing customers. We intend to continue to leverage on this favorable environment to grow our market share and build our clientele portfolio.”
Ocean Vantage’s manpower segment contributed the largest bulk to the group’s revenue in 2Q20 at RM12.39 million or 73.3 per cent of total revenue, up 25.4 per cent quarter-on-quarter from RM9.88 million in 1Q20.
Meanwhile, the engineering, procurement and construction (EPC) and project management segment contributed RM3.33 million or 19.7 per cent of total revenue and the remaining revenue of RM1.19 million was from the supply of material, tools and equipment segment.
The group recorded profit before tax (PBT) of RM2.89 million in 2Q20, including a one-off listing expenses of RM0.07 million. Profit after tax stood at RM2.16 million.
“All in all, we are pleased to emerge stronger and continue to grow despite the headwinds, which further demonstrated the resilience and agility of our asset-light business model,” Kenny continued.
“We remain upbeat on the outlook ahead, especially in the coming fiscal year, as we expect activities to pick up across the offshore and onshore oil and gas segment following the rise in crude oil prices from the March lows. We are actively pursuing a pipeline of projects across the upstream and downstream segments in Malaysia and abroad,” he concluded.
In 1H2020, Ocean Vantage registered a revenue of RM31.99 million while profit before tax was at RM5.74 million.
On balance sheet strength, Ocean Vantage remained in a healthy net cash position of RM6.96 million, where total gross cash holdings of RM8.53 million exceeded total borrowings of RM1.57 million as at 30 June 2020. Meanwhile, net cash generated from operating activities in 1H2020 was RM7.43 million.