Q Results Briefing

Transcription

1 Q Results Briefing 27 February 2018

2 Individual quarter Income Statement Q vs Q (Individual Quarter) FYE 2017 Dec 17 RM 000 FYE 2016 Dec 16 RM 000 Variance Revenue 78, ,128 (63.43%) Gross (loss)/profit (8,892) 19,828 (144.85%) (Loss)/Profit before taxation (75,050) 2,730 (2,849.08%) (Loss)/Profit after taxation (73,851) 4,050 (1,923.48%) Gross (loss)/profit margin (11.30%) 9.22% (222.62%) EBITDA (65,242) 20,442 (419.16%) Total assets 551, ,188 (32.68%) Net assets 203, ,667 (52.01%) Weighted average no. of ordinary shares ( 000) 825, , % Basic earnings per share (sen) (8.94) 0.50 (1,888.00%) Net assets per share (sen) (52.05%) 2

3 Cumulative quarter Income Statement FY2017 vs FY2016 (Cumulative) FYE 2017 Jan - Dec RM 000 FYE 2016 Jan - Dec RM 000 Variance Revenue 310, ,586 (50.06%) Gross (loss)/profit (89,850) 93,248 (196.36%) (Loss)/Profit before taxation (216,722) 16,367 (1,424.14%) (Loss)/Profit after taxation (216,747) 14,462 (1,598.73%) Gross (loss)/profit margin (28.90%) 14.98% (292.93%) EBITDA (177,797) 61,387 (389.63%) Total assets 551, ,188 (32.68%) Net assets 203, ,667 (52.01%) Weighted average no. of ordinary shares ( 000) 825, , % Basic earnings per share (sen) (26.25) 1.76 (1,888.00%) Net assets per share (sen) (52.05%) 3

4 FYE 2017 Vs FYE 2016 Revenue Breakdown (Cumulative Quarter) 4

5 RESULTS OVERVIEW Income Statement Significant loss for the FY2017 mainly due to: Loss for 3 major projects i.e o Offshore Pipeline Installation for Bardegg Baronia which was concluded in Q o 2 projects for Pengerang RAPID i.e gas pipeline and water pipeline projects which experienced continued delays and prolongation cost because of issues surrounding site access. To stem this loss, management is in the midst of negotiating with clients for the project handover based on current stage of completion. No utilisation for main asset pipelay barge KL101 to offset its fixed overhead cost. Slower billings for secured contracts as clients have continued to be cautious in issuing work orders under challenging industry environment. Impairment on the carrying value of pipelay barge KL101 due to the lower estimated market value of the asset in view of prevailing lower market demand. The Group is pursuing variation order claims to recover cost incurred arising mainly from project prolongation cost. 5

6 RESULTS OVERVIEW FY2017 Breakdown of Losses General Operation Cost KL 101 Impairment RM44 mill, 20% RM38 mill, 18% KL 101 Overhead Cost RM45 mill, 21% Project Loss RM89 mill, 41% 6

7 RESULTS OVERVIEW: BALANCE SHEET (5 QUARTERS) 7

8 RESULTS OVERVIEW Balance sheet Balance sheet position still manageable despite significant reduction in Net Assets and cash balance compared to 31 December 2016 due to loss incurred for FY2017. The Group has secured deferment of principal repayment of term loan for its pipelay barge KL101 till end of 2018 to conserve cashflow while the Group work to recover to profitability. Cash level stood at RM132 million and current ratio stood at 1.44 times at 31 Dec Net assets per share at 31 Dec 2017 was sen. Net gearing ratio for as at 31 Dec 2017 was at manageable level at 0.46 times. 8

9 Projects Client(s) Balance (RM 31/12/17 Hook-up and Commissioning (HUC) and Topside maintenance for platforms in West and East Malaysia OUTLOOK Order book Petrofac, Repsol & SE, PFLNG, Lundin, KPOC etc Timing Pipeline services,west & East Malaysia Various PSC s Underwater Inspection, Repair & Maintenance (IRM) and Transportation & Installation and others EPCC of Pengerang facilities, Kemaman NETSS & Bintulu ABF Production sharing companies/operators/c onractors PRPC, Petronas Gas, ABF Pipeline & Commissioning Installation & Construction Grand total 166 9

10 OUTLOOK Order book balance based on firmed contract value and actual work orders received as at 31 December 2017 was RM166 million. Timing of conversion of order book to revenue is within FY Challenging outlook expected to remain for FY2018 based on existing projects timing of execution. Bids submitted amounted to about RM2.5 billion with timing of work activities under bidding are towards Active pre-qualifications and market surveys conducted by potential clients indicates more activities expected from 2019 onwards. 10

11 OUTLOOK Management focus for the immediate and intermediate terms include: Immediate term Active bidding for new projects. Collaboration with Samling group of companies for business opportunities and resource sharing. Increased effort to get immediate utilization of pipe-lay barge KL 101. Continue with further cost optimisation and cash preservation. Medium term Increased business development effort to capture opportunities for long-term contracts. Collaboration with global technology owners to offer and create new products and services within oil and gas industry. 11

12 PROJECT PICTURE Underwater Inspection Repair & Maintenance 12

13 PROJECT PICTURE EPCC for Labuan Crude Oil Terminal for Sabah Shell Petroleum Corp 13

14 PROJECT PICTURE Pipeline services SKO Pig Trap Maintenance 14

15 PROJECT PICTURE Sabah Sarawak Gas Pipeline Maintenance KP233 Verification dig- up 15

16 PROJECT PICTURE Water Piping for fire fighting system for Pengerang RAPID (GRE) 16

17 PROJECT PICTURE EPCC for Asean Bintulu Fertiliser 17

18 PROJECT PICTURE Hook-up and Commissioning activities 18

19 Thank You Contact us: Firdauz Edmin Mokhtar Chief Financial Officer firdauzedmin@barakah.my Abdul Rahim Awang Chief Corporate Officer abdulrahim@barakah.my Barakah Offshore Petroleum Berhad No. 3, Jalan Teknologi, Taman Sains Selangor 1, Kota Damansara PJU 5, Petaling Jaya, Selangor D.E. Tel : Fax :