Shipbuilding firm TAS Offshore Bhd swung to the red registering a net loss of RM1.56 million for the second quarter ended November 30, 2017 against a net profit of RM489,000 in the previous corresponding period, due to unrealised forex losses as a result of the strengthening ringgit.
Revenue however, jumped three times from RM2.92 million to RM11.71 million on progressive revenue recognition on shipbuilding contracts.
TAS Offshore told Bursa Malaysia that despite signs of demand and supply finally finding a balance, the group will be cautious in its operation since the market is still uncertain due to the US shale oil industry.
“However, in the long term, we envisage the oil price outlook to be positive due to the increase in demand for energy when industrial and development activities increase in tandem with the population growth and the demand for offshore support vessels will return.”
For the first half of the year, TAS Offshore, however, reported a net profit of RM673,000 versus a net loss of RM642,000 in the same period a year ago, while revenue leaped over three fold from RM5.17 million to RM22.14 million.
The stock closed unchanged 33.5 sen with some 147,000 shares changing hands.