Malaysia-listed offshore services provider Yinson Holdings posted a profit of MYR10.74 million (USD2.85 million) for the first quarter that ended on 30 April 2015, down 65% year on year (y/y) from MYR31 million.
Revenue dropped 13% y/y to MYR256.6 million in the first quarter, partly because of reduced profit from the company’s trading and transport business segments.
Earnings contribution from the trading segment decreased MYR34.5 million or 20.5% y/y, mainly because of weak demand.
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Earnings contribution from the transport segment dipped MYR5.3 million or 20% y/y, as demand for the company’s transportation services has declined.
Yinson’s revenue contribution from its other operation segment recorded a loss of MYR21.9 million in the first quarter, as compared with a loss of MYR4.1 million in the first quarter of 2014..
The increase in loss was attributed to the fair value loss on derivatives (MYR10.2 million), loss on settlement of derivatives (MYR2.8 million), and foreign exchange loss (MYR6.8 million) due to the appreciation of ringgit against the US dollar.
On the other hand, revenue from the marine segment has increased marginally by MYR5.37 million in the first quarter because of the company’s efficient cost-control measures.
Yinson projects a moderate growth for 2015, with diversification of growth momentum across major economies.
The company is confident to sustain satisfactory result for the financial year ending on 31 January 2016 amid lower oil prices and weak domestic demand and economic environment.