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Alam Maritim Q3 profits jump 40% on higher OSV income

Alam Maritim Q3 profits jump 40% on higher OSV income
Malaysian offshore services provider Alam Maritim, saw third quarter net profit jump 40% to MYR 21.7m ($6.8m) from MYR15.5m previously as the offshore support vessels (OSV) segment performed well due to higher revenue from both owned and third party vessels as the average vessel utilisation rate improved considerably.

Profit from the segment more than doubled on higher operating margins from own vessels and higher share of results of jointly controlled entities.

For the year-to-date, the group recorded a turnover of MYR346.9m as compared to MYR335.1m for the same period last year. In the third quarter, revenue rose to MYR179.9m from MYR116.3m previously.

"The business outlook for Alam Maritim Group is contributed by the level of energy industry spending by the oil majors to increase its oil and natural gas reserves. 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 in a stock market announcement.

"As such, the industry are expected to remain robust, involving substantial capital spending by oil majors and thus providing significant cash flows and potential earnings to the group," it added.

TAGS: Offshore