Wah Seong suffers loss in 1Q on O&G revenue decline

Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Wednesday, 29 May 2013 19:37
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KUALA LUMPUR (May 29): Wah Seong Corp Bhd dipped into the red
on lower revenue from its oil and gas (O&G) segment.
In a filing with Bursa Malaysia, the diversified company reported a net
loss of RM1.55 million for its first quarter ended March 31, 2013
(1QFY13). This compares to the previous corresponding period’s net
profit of RM17.78 million.
Wah Seong’s revenue also fell to RM427.91 million from the previous
year’s RM481.56 million.
The company said both its renewable energy and industrial trading and
services segments saw increases in revenue and profit before tax
(PBT).
However, its O&G segment’s revenue was lower from the previous
corresponding period, which resulted in a loss before tax.
“As the segment is predominantly project based, the commencement of
projects which are mainly anticipated to be in 2QFY13 has impacted
revenue recognised in 1QFY13,” Wah Seong explained in the filing.
On its prospects, the company said it expects a couple of factors to
have a positive impact for this financial year and the next.
The factors are its current order book amounted to RM1.5 billion and “a
number of potential opportunities that the group is tracking at the moment.”