Malaysia-listed shipbuilder Coastal Contract’s net profit for the second quarter of 2015 declined 27.8% year on year (y/y) to MYR34.8 million (USD8.2 million), while its revenue dipped 32.3% y/y to MYR164 million.
Similarly, its gross profit also declined 36% y/y to MYR31.4 million.
The company attributed the decrease in earnings to fewer vessel deliveries by its shipbuilding and ship repair division in the period.
Its vessel chartering division posted MYR2.8 million in revenue in the period, driven by improved earnings from a new short-term bareboat charter contract.
“While the Group is witnessing fewer offshore supply vessels (OSV) orders due to weak sector sentiment, we would strive to continue converting existing enquiries into sales orders. Meanwhile, our sizeable orderbook positions us strongly to weather the ongoing rout in global crude oil prices,” commented Coastal Contract executive chairman Ng Chin Heng.
Currently, the company’s orderbook totals MYR3.4 billion, comprising MYR1.1 billion from OSV and other related vessels orders, and MYR2.3 billion from the fabrication and charter of its first jackup gas compression service unit and the sale of its jackup drilling rig, Coastal Driller 1.
Coastal Contracts has declared a first interim single-tier dividend of MYR0.02 per share, representing a payout of about MYR10.6 million. The dividend is payable on 29 September with the ex-date being 9 September.