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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 31 December 2016 reduced by 16% while profit before tax for the current quarter increased by 119% when compared to the corresponding quarter ended 31 December 2015. The lower revenue in the current quarter as compared to the corresponding quarter is due to lower vessel utilisation rate and work orders received and performed as compared to the corresponding quarter
Whilst revenue reduced by RM36.0 million ie 16%, profit before tax for the current quarter increased by RM23.0 million ie. 119%. The lower profit before taxation in the fourth quarter of 2015 has taken into account of expenses such as PPE written off of RM68.5 million whereas only RM3.6 million impairment loss on PPE had been provided for in the current 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 11% from RM778.6 million in the previous corresponding year to RM694.6 million in the current year. The lower revenue in the current year as compared to the corresponding year is mainly due to lower vessel utilisation rate and lower value of work order received and performed in the current year.
Despite that, the Group registered a higher profit before amortization expenses, share of results of an associate, non-operating income and tax of RM92.9 million in the current year as compared to RM76.7 million in the corresponding year.
The lower profit in the corresponding year of 2015 has taken into account of expenses such as PPE written off of RM68.5 million whereas only RM3.6 million impairment loss on PPE had been provided for in the current year.
The gradual recovery of crude oil price by more than 100% from a 13-year low of USD27 per barrel since January 2016 to about USD55 per barrel as at the beginning of February 2017 should augur well for the sector. The measures taken by OPEC and non-OPEC members to curb production output have certainly stabilised crude oil prices and this should encourage oil majors to increase spending in 2017. If this happens, it would invariably provide more opportunities for the service providers of maintenance services and OSV chartering business. As such, it is in this area that the Group anticipates a better prospect for the current year.
Our Group currently has a remaining order book of about RM2.8 billion to last until 2018 and is currently awaiting the results of some tenders for jobs amounting to RM4.0 billion. Though we cannot predict the outcome of these tenders, the Group has always demonstrated operational track record and has a clear market leadership in the Brownfield services segment.
The Directors will continue to exercise due care and prudence in the running and administration of the company's business.