KUALA LUMPUR: Reservoir Link Energy Bhd's net profit surged to RM3.95 million in the second quarter (Q2) ended June 30, 2021, from RM887,000 registered in the same quarter a year ago.
In a statement today, the company said the robust results were primarily driven by the recognition of revenue from the higher number of jobs in Mauritania for perforation and wash for abandonment and decommissioning works despite the challenging working environment with Covid-19 restrictions.
Revenue in the same quarter increased 72.6 per cent to RM28.53 million from RM16.54 million.
The company's balance sheet remains healthy, with a current ratio of 2.6x and a net cash position of RM20.7 million.
Reservoir Link has proposed an interim dividend of 0.5 sen per share, amounting to RM1.4 million.
Reservoir Link executive director Thien Chiet Chai said moving forward, the company expects the global energy sector's recovery is gaining momentum and that its business diversification strategy on the energy transition shift has come to fruition.
"Our shareholders have also approved the acquisition of 51 per cent stake in Founder Energy Sdn Bhd. The acquisition comes with immediate earnings accretion from the RM13.8 million profit guarantee for the next 24 months from the completion date.
"We will continue to focus on growing both our oil and gas, and also the solar renewable energy business," he said.
For the six month period, Reservoir Link's net profit increased 12.2 per cent to RM4.05 million from RM3.61 million, while revenue increased 2.6 per cent to RM40.42 million from RM39.39 million.
