KUALA LUMPUR (Dec 16): SILK Holdings Bhd net loss for the first quarter ended Oct 31, 2011 widened to RM2.19 million from a net loss of RM1.15 million, despite a 11.1% increase in revenue year-on-year to RM64.65 million from RM58.17 million.
The company said on Friday that loss per share for the quarter was 0.57 sen compared to loss per share of 0.30 sen, while net assets per share was 47.61 sen.
SILK chairman Datuk Mohd Azlan Hashim said the loss for the quarter was within expectation given the significantly higher depreciation and amortisation charges and finance costs incurred in line with the fleet expansion at its oil & gas (O&G) support services division.
“That said, the board is encouraged by the improvements in revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) and expect that these will eventually provide a positive boost to the bottom-line,” he said.
Commenting on the company’s divisions, Mohd Azlan efforts by the management of its highway infrastructure division had enabled it to continue to record operational improvements.
“Given the relatively stable cost base of the division, the improved revenue emanating from the operational improvements has allowed for the after-tax loss for the quarter to be reduced considerably” he said.
On its O&G support services, Mohd Azlan said the division’s increase in depreciation and finance costs were unavoidable given its fleet renewal program and fairly conservative accounting policies in respect to the depreciation of its vessels and dry-docking costs.
“That said, the costs remain manageable and within expectation,” he said.
“All in all, the board is pleased with the overall top-line performance of the group.
“However, it takes cognisance of the increase in depreciation and finance costs and will monitor these closely going forward,” he said.
The company said on Friday that loss per share for the quarter was 0.57 sen compared to loss per share of 0.30 sen, while net assets per share was 47.61 sen.
SILK chairman Datuk Mohd Azlan Hashim said the loss for the quarter was within expectation given the significantly higher depreciation and amortisation charges and finance costs incurred in line with the fleet expansion at its oil & gas (O&G) support services division.
“That said, the board is encouraged by the improvements in revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) and expect that these will eventually provide a positive boost to the bottom-line,” he said.
Commenting on the company’s divisions, Mohd Azlan efforts by the management of its highway infrastructure division had enabled it to continue to record operational improvements.
“Given the relatively stable cost base of the division, the improved revenue emanating from the operational improvements has allowed for the after-tax loss for the quarter to be reduced considerably” he said.
On its O&G support services, Mohd Azlan said the division’s increase in depreciation and finance costs were unavoidable given its fleet renewal program and fairly conservative accounting policies in respect to the depreciation of its vessels and dry-docking costs.
“That said, the costs remain manageable and within expectation,” he said.
“All in all, the board is pleased with the overall top-line performance of the group.
“However, it takes cognisance of the increase in depreciation and finance costs and will monitor these closely going forward,” he said.
