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Perdana Petroleum 2014 earnings rise 43% to $24m

Perdana Petroleum 2014 earnings rise 43% to $24m
Perdana Petroleum posted full-year earnings of MYR88.1m ($24.3m), 43% higher than the MYR61.66m it reported in 2013, mainly due to higher vessel utilisation and an increase in the number of vessels, it said in a stock market release.

Revenue also rose 26% to MYR347.2m in 2014 from MYR274.7m previously. The company said the average vessel utilisation improved to 92% in 2014 from 80% in the previous year.Perdana Petroleum said it is banking on its “young and versatile” fleet of offshore support vessels (OSVs) with an average age of 4.3 years, to weather the oil and gas (O&G) storm.

“Currently, more than 70% of our fleet is under long-term contracts with a strong order-book of MYR1.1bn up to the year 2019 and our tendering activities remain robust,” it said.The company believes that its young fleet and tender activities would continue to provide longer-term charter opportunities and the stability needed amid the uncertainty in the O&G industry.

However, recent weakness is already being seen, with fourth-quarter earnings dropping 31% to MYR15m from MYR21.9m in the previous corresponding quarter, due to impairment losses on goodwill amounting to MYR16.8m recognised during the quarter.

Revenue was also slightly weaker at MYR77.6m against MYR78m previously.

Looking ahead however, the group acknowledged the lingering challenging prospects for O&G operators and service providers as the fluctuation in the oil price remains uncertain.It said any prolonged and continued decline in the oil price could result in oil companies cutting back on exploration budgets as well as development capital expenditures, which could lead to slower new project awards.