Icon Offshore 1Q net profit jumps 525% to RM19.5m

by **Cals** Tue 24 Jun 2014, 23:53

Business & Markets 2014

Written by Sulhi Azman of theedgemalaysia.com

Tuesday, 24 June 2014 09:52

KUALA LUMPUR: Icon Offshore Bhd, which will list on the Main Market of Bursa Malaysia tomorrow, saw its net profit for the first quarter ended March 31, 2014 (1QFY14) jump sixfold to RM19.5 million from RM3.12 million, mainly due to recognition of tax credit arising from an internal reorganisation amounting to RM111 million.
“On an adjusted net profit basis (after excluding exceptional items), net profit grew to RM23.9 million in 1QFY14 from RM9.5 million in 1QFY13,” said Icon in a statement yesterday.
Revenue for 1QFY14 rose 23% to RM80.1 million from RM65.3 million a year ago, primarily due to additional revenue from new vessels acquired in the financial year ended Dec 31, 2013 (FY13). The vessels’ overall utilisation also increased to 79% for 1QFY14 from 76% in 1QFY13.
Icon said the outlook of the offshore support vessel (OSV) industry remains “dynamic”, adding that strong upstream activities in Malaysia and the region is expected to underpin a strong demand for OSVs.
“With an active fleet expansion, diversification and renewal programme in place, Icon expects the vessels acquired in FY13 to contribute to a full year revenue in FY14.
“Adding to this, income from new vessels under construction will be coming on stream within the next two years, and the company is in a strong position to take advantage of the positive demand outlook for the OSV segment,” the group added.
At a retail price of RM1.85 per share, Icon’s initial public offering is expected to raise up to RM1 billion, of which a major portion of the proceeds will be used for fleet expansion as well as repayment of bank borrowings.
As at April 30, Icon had a fleet of 32 vessels available for charter.

This article first appeared in The Edge Financial Daily, on June 24, 2014.