Kuala Lumpur-listed Alam Maritim recorded first half net profit of MYR36.32m ($11.49m), down 29.7% compared to MYR51.68m in the same period of 2013.
Revenue in the first six months also dropped to MYR161.21m from MYR167.05m as contribution from the OSV segment fell. The profitability of the OSV segment reduced by 34.4% year-on-year due primarily to lower average utilisation rate of chartered vessels.
Looking ahead, Alam Maritim said the business outlook continues to be affected by the level of energy industry spending by the oil companies on exploration and production activities.
“Based on the current market condition, the domestic oil and gas industry will benefit from the government’s explicit and implicit support, given its strategic importance, and remains as the core revenue generator to the nation’s economy,” Alam Maritim said.
As such, the oil and gas industry is expected to remain robust. “However, concerns regarding the continued slowdown of some European economies, coupled with a weak global economic growth and the threat of rising interest rates remain,” it said.
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