Kuala Lumpur-listed TAS Offshore reported a net loss of MYR642,000 ($144,430) for the first half ended 30 November 2016 for its financial year ending 31 March 2017, compared to the profit of MYR10.4m in the previous corresponding period.
The first half revenue plunged to MYR5.17m compared to MYR111.85m seen in the year-ago period.
TAS Offshore, which mainly builds and repairs offshore vessels, noted that operating condition in the offshore sector is expected to stay challenging in the near term despite the recent hike in crude oil prices.
“The boost for the oil and gas industry may be short term as the global economy remains weak and current higher oil price may lead to an increase in shale drilling and redeployment of oil rigs in the US which may put a dent to the sustainability of the oil price upward movement,” the company commented.
“In the long term, we envisage the oil price to recover due to the increase in demand for energy when industrial and development activities increase in tandem with the population growth and thus, the demand for offshore support vessels to return,” it added.
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