KUCHING: Sarawakian player Reservoir Energy Group Bhd (Reservoir Energy) remains optimistic on its outlooks within the local oil and gas (O&G) scene following much optimism after its recent listing on the ACE Market of Bursa Malaysia.
In an interview with The Borneo Post, Reservoir Link’s executive director Thien Chiet Chai said the group did its best to manage through the Covid-19 pandemic.
“Fortunately, the group falls under the ‘essential’ category during the MCO which enable us to continue operating under specific standard operating prodecures,” he said to The Borneo Post.
“Some contracts experienced delays — that is to be expected in this unprecedented times. However thus far, there are no cancellation of projects, only delayed which is good.
“In the short term, our progress may be bounded by the required measures to be implemented to minimise the spread of covid-19. The best way to tackle issues arising from unprecedented times is to be adaptable as we tackle and treat each issue differently.”
This falls back on its belief that Sarawak’s oil and gas sector remains active and healthy, as based on Petronas’ current policy, at least 30 per cent of oil and gas jobs in Sarawak are to be awarded to local Sarawak contractors.
“Nevertheless, we look at Malaysia as a whole as there are other oil & gas business in Malaysia that require our services,” Thien added.
“We are proud to be a Sarawak oil and gas company. Our goal is not just to obtain jobs in Sarawak but grow to be a regional player as what we have been doing all this while. We remain optimistic in delivering our business objectives amidst the uncertain outlook of the O&G industry.”
Reservoir Link’s offer of 14.25 million new shares to the public under its listing exercise was oversubscribed by 11.49 times. Reservoir Link’s share price jumped as much as 92.7 per cent upon its debut.
“We believe investors see and believe in the fundamentals, capabilities and Reservoir Link’s prospects which led to the uptake,” he added.
Meanwhile, the company eported a revenue and profit after tax (PAT) of RM16.54 million and RM0.90 million respectively for its second quarter ended June 30, 2020 (2QFY20)This brought the cumulative first half (1HFY20) revenue and PAT to RM39.39 million and RM3.78 million respectively.
Earnings per share for 1HFYE2020 stood at 1.58 sen. As at 30 June 2020, the Group’s gearing ratio was 0.36 time while current ratio stood at 1.30 times.
“It was a tough (second) quarter not only for us but the global business community,” Thien said during their results announcement. “Nonetheless, our Group managed to cushion the impact of the Covid -19 pandemic and registered a profitable quarter.
“Moving forward, we will continue to undertake and implement our business strategies cautiously to sustain the growth. As announced, we have secured a work order recently from Petronas Carigali for the provision of 3 perforate, wash and cement jobs.
“We are cautiously optimistic on our group’s current year performance while remain positive on our Group’s long-term potential.
“We will continue to guide our group in the current market landscape, utilise the IPO proceeds as earmarked and to secure jobs and new contracts in order to deliver value to our shareholders.”