Update Coastal Contracts 2Q14 net profit jumps 50.6%

by **Cals** Fri 22 Aug 2014, 01:27

Update Coastal Contracts 2Q14 net profit jumps 50.6%

Business & Markets 2014

Written by Gho Chee Yuan of theedgemalaysia.com

Thursday, 21 August 2014 20:30

KUALA LUMPUR (Aug 21): Coastal Contracts Bhd reported a 50.6% increase in its net profit to RM48.23 million for the second quarter ended June 30, 2014 (2Q14) from RM32.03 million from a year ago due to larger deliveries of new build offshore support vessels and an enhanced product mix.

Revenue for the quarter jumped 69.4% to RM242.37 million from RM143.04 million, while earnings per share grew to 9.08 sen from 6.63 sen.

The group also announced a first interim dividend of 3.4 sen per share for the financial year ending Dec 31 2014, totalling RM18.1 million, to be payable on Sept 29.

In a press statement today, the group said the enhanced product mix comprises higher-specification and higher-value new builds.

For the six months ended June 30 2014, the group's net profit rose 54.2% to RM97.4 million from RM63.1 million previously, while revenue jumped 49.7% to RM467.1 million from RM311.9 million a year ago, it said.

Its executive chairman Ng Chin Heng believes the market for OSVs will continue to thrive on the back of resilient exploration and production activity in the global oil and gas (O&G) industry.

"This has led to strong sales growth to date, translating into equally commendable bottom line performance," he said.

Going forward, the group aims to tap into the growing demand for larger capacity and higher-specification new builds that will command higher-selling premiums to further strengthen its earnings performance and growth prospects.

"As such, we are optimistic of delivering a strong performance for the rest of the year," Ng said.

As at June 30, 2014, he said the group’s order book stood at RM2.3 billion, which will sustain the group until 2015.

The group has also ventured into the rig-building and chartering sector with the construction of high-specification jack-up rig (JU rig) – Coastal Driller 4001 – which is targeted for delivery in the fourth quarter of 2014.

With the JU rig near completion, the group is discussing with several oil and gas players for a potential charter.