Sealink International has reported a 71% decline in losses on the back of a “gradual pick-up of its core activities of OSV chartering and ship repair”.
The Malaysian company lost just over MYR 4m ($960,000m) for the third quarter against a loss of MYR 11.7m seen 12 months earlier.
Sealink said revenue for the current quarter ended 30 September 2019 increased by more than doubled from MYR 11.2m a year ago to MYR 24m in the latest quarter.
Its chartering division saw revenue almost double versus a year ago to MYR 20m, as vessel utilization “improved substantially” due to more contracts were being awarded.
Meanwhile, its shipbuilding division posted a 10-fold increase in revenue to MYR 4m as a result of higher ship repair activities.
“There is more optimism over prospects for the oil and gas industry on the back of stable oil prices, prompting higher levels of offshore drilling activity, construction and maintenance projects,” Sealink said.
“Based on industry analyst reports, the oil market reacted positively to OPEC’s decision to extend oil output cuts by another nine months to March 2020 and US sanctions against exporters Iran and Venezuela.
“Meanwhile, analyst believes that oil prices will see some stabilisation for 2019, supported by demand and supply fundamentals.
“On the back of gradually steadying oil prices, analysts expect to see greater investments in the upstream space for the coming years.”
Last week, Icon Offshore, Malaysia’s largest OSV operator, reported a further improvement in its financial performance, but still ended the quarter in the red.
