Coastal Contracts Bhd recorded a 32 per cent dip in pre-tax profit to RM36.6 million for the third quarter ended September 30, 2011 against RM53.6 million recorded in the previous corresponding period.
The company registered a lower revenue of RM110.2 million for the same period compared with RM192.1 million registered in the corresponding quarter of last year.
In a filing to Bursa Malaysia, the company said its shipbuilding and ship repair division registered a lower revenue of RM108.6 million, versus RM188 million recorded in the previous corresponding period, due to less vessels delivered in the third quarter of the current financial year.
The revenue generated from its vessel chartering division dropped 61 per cent to RM1.6 million, from RM4.1 million registered in the same corresponding quarter, due to lower fleet utilisation rate, the company said.
Despite the growing concern over the Eurozone sovereign-debt crisis, Coastal Contract said crude oil price maintained around US$98 per barrel.
With the robust deepwater oilfield developments off the western coast of Sabah, the company is actively pursuing opportunities to diversify into the offshore structure fabrication business.
With the continued growth in committed exploration and production capital expenditure by oil companies, Coastal Group said it was modestly optimistic of clinching new contracts for offshore support vessels.
The group expects to redeploy its chartering fleet within Asia Pacific's niche market for coastal and inland waterway transportation to earn recurring income stream.
With net cash of RM180 million and substantially low gearing ratio of 2.3 per cent, as at end-September 2011, the group was on a solid financial footing which would shield it from the fickle market environment.
"Barring drastic adverse developments in the global and regional economies, Coastal Group is on track to achieve a reasonably satisfactory financial performance for 2011, backed by the shipbuilding division's solid vessel sales order book," the company added. -- Bernama
The company registered a lower revenue of RM110.2 million for the same period compared with RM192.1 million registered in the corresponding quarter of last year.
In a filing to Bursa Malaysia, the company said its shipbuilding and ship repair division registered a lower revenue of RM108.6 million, versus RM188 million recorded in the previous corresponding period, due to less vessels delivered in the third quarter of the current financial year.
The revenue generated from its vessel chartering division dropped 61 per cent to RM1.6 million, from RM4.1 million registered in the same corresponding quarter, due to lower fleet utilisation rate, the company said.
Despite the growing concern over the Eurozone sovereign-debt crisis, Coastal Contract said crude oil price maintained around US$98 per barrel.
With the robust deepwater oilfield developments off the western coast of Sabah, the company is actively pursuing opportunities to diversify into the offshore structure fabrication business.
With the continued growth in committed exploration and production capital expenditure by oil companies, Coastal Group said it was modestly optimistic of clinching new contracts for offshore support vessels.
The group expects to redeploy its chartering fleet within Asia Pacific's niche market for coastal and inland waterway transportation to earn recurring income stream.
With net cash of RM180 million and substantially low gearing ratio of 2.3 per cent, as at end-September 2011, the group was on a solid financial footing which would shield it from the fickle market environment.
"Barring drastic adverse developments in the global and regional economies, Coastal Group is on track to achieve a reasonably satisfactory financial performance for 2011, backed by the shipbuilding division's solid vessel sales order book," the company added. -- Bernama
