TAS reports three-fold increase in earnings

by **Cals** Thu 24 Oct 2013, 11:35

Business & Markets 2013

Written by Levina Lim of theedgemalaysia.com

Thursday, 24 October 2013 10:23

KUALA LUMPUR: TAS Offshore Bhd’s net profit for its first quarter ended Aug 31, 2013, rose three-fold to RM8.5 million from RM2.7 million in the previous corresponding period while revenue rose 66.5% to RM29.6 million from RM17.77 million.

Compared with the preceding quarter, revenue was 31.67% lower although profit before tax more than tripled to RM10.22 million due to a reversal of impairment losses on trade receivables of RM3.3 million and a gain on foreign exchange of RM1.8 million in the current quarter as the US and Singapore dollars strengthened.

TAS, an investment holding company with operations in shipbuilding and ship repairing in Malaysia, Singapore, Indonesia and the United Arab Emirates (UAE), registered losses of RM14 million from its Malaysian operations.

The loss was attributed to the withdrawal of a shipbuilding contract worth RM16.1 million.

During the quarter, operations in UAE were the main revenue contributor, followed by Singapore with RM24.5 million and RM19 million, respectively.

According to TAS, demand for offshore support vessels has improved as oil majors have increased their activities, benefiting the group with increased shipbuilding orders.

It describes the global economic climate as still “unsettled and challenging”, and will remain cautious in its business operations, going forward.

TAS’ share price rose from 47 sen on Sept 9 to close at 97 sen yesterday.

This article first appeared in The Edge Financial Daily, on October 24, 2013.