Barakah’s earnings fall on higher taxes

by **Cals** Wed 27 Nov 2013, 10:20

Business & Markets 2013

Written by Lyana Shohaimay of theedgemalaysia.com

Wednesday, 27 November 2013 10:13

KUALA LUMPUR: Oil and gas services provider Barakah Offshore Petroleum Bhd saw its net profit fall 24.2% year-on-year to RM10.6 million for its fourth quarter ended Sept 30, 2013 (4QFY13), mainly due to higher taxes. Revenue rose 70% to RM87.11 million from RM51.24 million a year ago.

Its taxes amounted to RM11.1 million for the quarter compared with RM227,000 in the previous corresponding period.

For its FY13 ended Sept 30, net profit rose 23.5% to RM41.03 million from RM33.21 million a year ago. Revenue rose 48% to RM298.9 million, the company said in an announcement to Bursa Malaysia yesterday.

For FY13, Barakah said its two business segments — pipeline and commissioning services, and the installation and construction services — contributed 59.11% and 40.89% respectively to its turnover. Revenue from its pipeline and commissioning segment rose 27.41% in FY13 on a higher number of projects awarded by major oil companies.

Turnover in the installation and construction segment increased 93.11% mainly due to several barge chartering contracts as well as transport and installation projects in FY13.

As at Nov 15, the group had an order book of RM756 million, which the board believes will continue to drive growth for the company.

“The group will continue to leverage on its core competencies and its newly completed pipe-laying accommodation barge, Kota Laksamana 101, to look for opportunities for projects in the oil and gas industry,” it said.

On Nov 6, Barakah debuted on the local bourse, which involved a share swap with PN17-status Vastalux Energy Bhd, followed by a transfer of the latter’s listing status to the Main Market.

The exercise involved the issue of new Barakah shares and redeemable convertible unsecured loan stocks that raised RM126 million.

This article first appeared in The Edge Financial Daily, on November 27, 2013.