Hot Stock Tanjung Offshore falls 5% after posting 4Q net loss

by **Cals** Thu 25 Feb 2016, 01:39

Hot Stock

[size=28]Tanjung Offshore falls 5% after posting 4Q net loss

By Ahmad Naqib Idris / theedgemarkets.com | February 24, 2016 : 11:29 AM MYT

KUALA LUMPUR (Feb 24): Tanjung Offshore Bhd's share price fell 5% in early trades, after the oil and gas (O&G) support services provider posted a net loss in its fourth quarter ended Dec 31, 2015 (4QFY15).

At 10.51am, Tanjung Offshore fell 1 sen or 4.62% to 31 sen, with 60,000 shares exchanged.

In a filing yesterday, the company reported a net loss of RM26.35 million or 6.95 sen per share in 4QFY15 compared to a net profit of RM690,000 or 0.19 sen per share a year earlier.

Revenue for the quarter was lower at RM18.81 million, from RM19.41 million in the previous year, "as most contracts were still at the bidding stages", said the company.

For the full-year, cumulative net loss stood at RM76.26 million compared to net profit of RM1.06 million in the previous year, on the back of a 43% year-on-year decline in revenue to RM60.68 million.

According to Bloomberg, Tanjung Offshore's share price has been steadily declining over the past year, down by approximately 43% since touching a closing high of 56 sen in February last year.

The continued fall in the counter is in line with the overall slowdown in the O&G sector, amid the slump in crude oil prices, with Brent crude falling below US$27 per barrel recently. Today, Brent crude futures fell 1% to US$32.92 per barrel.

Despite the challenging O&G environment, the company said it will continue to focus on its O&G business, while also looking for new ventures to grow its operations.

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