KUALA LUMPUR: Icon Offshore Bhd saw a 20 per cent decline in its share price since the end of last month, following the disclosure of a notable decline in its net profit for the fiscal year 2023 (FY23).
The company reported a staggering 97.1 per cent year-on-year plunge, with net profit decreasing to RM4.86 million from RM168.92 million in FY22.
Despite this setback, the mood within the offshore support vessel company remains positive, as indicated by its managing director Datuk Sri Hadian Hashim.
Hadian highlighted the company's upbeat outlook for the remainder of the year.
Icon Offshore's optimism transcends its recent contract win with Petrolanpan Sdn Bhd, which was not disclosed in terms of value.
In a statement, Hadian underscored the significance of this contract as a positive development, emphasising the company's eagerness to leverage its current growth trajectory and fortify its standing in the market.
The newly secured contract, spanning an initial 45 days with a potential 15-day extension, involves supplying accommodation workboats, notably the Icon Kayra, for hook-up and commissioning activities.
Hadian believes this partnership not only validates their capabilities but also signals promising growth opportunities for the company moving forward.
Icon Offshore's FY23 net profit declined to RM4.86 million due to the absence of contributions from its drilling segment following its disposal in November 2022. Revenue for FY23 decreased to RM199.79 million from RM283.48 million in the previous year.
In the fourth quarter ending on Dec 31, 2023 (Q4 2023), the company incurred a net loss of RM1.54 million, compared to a net profit of RM150.99 million in Q4 2022. Revenue for the period dropped by 27.8 per cent year-on-year to RM42.17 million from RM58.42 million in Q4 2022.
In a recent filing with the stock exchange, the company projected a stronger performance for FY24, supported by sustainable crude oil prices and robust oil and gas activities.
Icon Offshore remains committed to core strategies such as operational enhancement, cost efficiency, and cash preservation, aiming for stability in both business and financial performance.
With an impressive order book of RM333.8 million for its OSV segment as of Dec 31, 2023, with long-term contracts constituting 92 per cent, Icon Offshore said it stands in a favourable position.
The board remains focused on refining OSV operations and exploring synergistic opportunities within the favorable oil and gas landscape.
