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The Group's performance for the quarter under review versus the corresponding quarter of the previous financial year is tabled below:
Comparatively, the Group's revenue for the current quarter ended 30 September 2016 increased by 6% while profit before amortization expenses, share of results of an associate and tax for the current quarter increased by 240% when compared to the corresponding quarter ended 30 September 2015. The higher revenue in the current quarter as compared to the corresponding quarter is due to higher vessel utilisation rate as compared to the corresponding quarter.
Whilst revenue increased by RM11.2 million ie 6%, profit before non operating (expenses)/income and tax for the current quarter increased by RM36.5 million ie. 240%. The increase is due to higher vessel utilisation rate and higher profit margin contribution from work orders performed in the current quarter as compared to the corresponding quarter.
The intangible assets arose from the existing charter contracts between Perdana Petroleum Bhd and its customers, which expires in 2018. These assets will be amortised until 2018.
In the opinion of the Directors, the results for the current quarter have not been affected by any transactions or events of a material nature which have arisen between 31 December 2015 and the date of this report.
The Group's performance for the current financial period under review versus the corresponding financial period of the previous financial year is tabled below:
Revenue decreased by 9% from RM556.9 million in the previous corresponding period to RM509.0 million in the current period. The lower revenue in the current period as compared to the corresponding period is mainly due to lower vessel utilisation rate and lower value of work order received and performed in the current period.
The Group registered a profit before tax of RM37.6 million in the current period as compared to profit before tax of RM184.0 million in the corresponding period. The lower profit before tax for the current period is mainly due to amortization expenses of RM12.9 million, high interest costs incurred amounting to RM77.7 million from higher borrowings, a one-off break fund costs of RM11.3 million incurred in the settlement of USD term loans for 12 vessels which were refinanced via Sukuk bonds and lower profit margin contribution from work orders performed in the current period as compared to the corresponding period.
There was an additional tax charge of RM7.0 million from the conclusion of PPB's tax audit as disclosed under Note A13.
The improvement of oil price to about USD50 per barrel currently brings some reprieve to the O&G sector and oil majors definitely have to address the problems of corrosion on O&G assets in order to maintain asset integrity and operability, to sustain or even enhance production. It is in this area that the Group anticipates more maintenance jobs to come in the next quarters or years as Petronas recalibrates its budget.
Our Group is optimistic that maintenance activities for the O&G industry would still be resilient and the longer term prospects are still intact considering the Group's healthy order book estimated at around RM3.0 billion to last at least until 2018 and an outstanding tender book of approximately RM4.0 billion. The Group has excellent operational track record and has a clear market leadership in the brownfield services segment and there is potential further upside from the rationalisation efforts at Perdana Petroleum and also operational synergies. The management is confident that opportunities in the areas of maintenance are abound and prospects look brighter as this area has been our specialty.
The Directors will continue to exercise due care and prudence in the pursuit of administering the Group's business and in ensuring that shareholders' interest and values be sustained and enhanced.