Tanjung Offshore 2Q profit up 118% to RM7.14m

KUALA LUMPUR: TANJUNG OFFSHORE BHD [] net profit for the second quarter ended June 30, 2011 surged 118.3% to RM7.14 million from RM3.27 million, boosted by higher revenue from its equipment and maintenance services coupled with higher utilisation of offshore support vessels.

It said on Wednesday, Aug 24 revenue for the quarter surged to 33.5% to RM183.12 million from RM137.15 million in 2010. Earnings per share rose to 2.47 sen from 1.29 sen a year ago while net assets per share was RM1.27.

For the six months ended June 30, Tanjung’s net profit fell 38.9% to RM3.85 million from RM6.31 million. However, revenue rose7.2% to RM283.69 million from RM264.70 million due to additional engineering equipment and maintenance contracts secured and completed during the quarter under review.

Tanjung reduced its losses from the engineering equipment division through its cost reduction and streamlining of business operations. The engineering equipment division had also registered improved profitability margins.

On its outlook, Tanjung remained positive on the prospects of oil and gas industry in Malaysia and the region.

Notwithstanding the volatility in oil prices, the company said it was confident that it would be able to continue to enhance its services to the oil majors in their exploration, development of new oilfields, upgrade and maintenance of the existing and new offshore platforms, in particular various development programmes spearheaded by Petroliam Nasional Bhd.

“Tanjung will continue to penetrate niche markets within its four core businesses to further enhance its growth in revenue and profitability in the oil and gas industry. We will continue to invest in sectors or assets that are fundamentally strong in generating healthy returns and taking a long term outlook of the oil and gas industry,” it said.