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Alam Maritim reverses to $4.7m Q1 loss as revenue plunges by a third

Alam Maritim reverses to $4.7m Q1 loss as revenue plunges by a third
Malaysian offshore services provider Alam Maritim Resources turned to a MYR19.2m ($4.7m) loss in the first quarter from an MYR8.6m profit in the previous corresponding period as turnover plunged 34% to MYR48.7m from MYR73.7m in the same period last year.

Alam Maritim said in a stock market release that revenue from the Offshore Support Vessels (OSV) segment decreased by 33% due to lower average utilisation rate while revenue from the Subsea Services/Offshore Installation & Construction (OIC) segment fell 36% mainly due to lower contributions from subsea projects

The group blamed the poor performance of the OSV segment on losses suffered by associates and jointly controlled entities, and foreign exchange losses, which resulted in the segment turning to a MYR9.7m pre-tax loss from a MYR8.7m profit previously.

Meanwhile the Subsea Services/OIC segment registered loss before taxation of MYR9.3m compared to a pre-tax profit of MYR1.4m recorded in the same period last year due to lower revenue and contribution margin registered by the segment.

Looking ahead, Alam Maritim said the group "is influenced by the level of capital expenditure spending by the Oil Majors which is in line with the volume of exploration and production activities".

With current market condition, it expected the Malaysian oil and gas industry to be vulnerable and volatile in the interim period due to slower project rollouts and softening charter rates.

"Despite these challenges, we believe that the sector should be able to withstand short term uncertainties and sustain with solid fundamentals in the long run," Alam Maritim said.