Icon Offshore has seen a major reduction in losses for the second quarter due to a lack of vessel impairment charges made a year ago.
It still lost MYR 881,215 ($208,579), but this was an improvement on the loss of almost MYR 3.6m seen 12 months ago.
The Malaysian offshore vessel operator also saw its revenue decline 6% year-on-year to MYR 50.1m due to a number of vessels under going drydockings.
It also reported a modest quarter-on-quarter increase in vessel utilization from 46.1% to 50.1%.
“The group continues to focus on securing new contracts and maximising utilisation rates through competitive bidding for domestic and regional contracts as well as leveraging on its continued presence in Brunei,” Icon Offshore said.
“The upstream exploration and production activities in Malaysia are expected to gradually increase but continue to fluctuate and underpin the demand for OSVs.”
Icon Offshore said a “significant portion” of its order book is long term in nature, which it said provides “cashflow stability and earnings visibility”.
The company said it continues to work on conserving cash and reducing costs to “improve its liquidity and competitiveness on the back of a leaner balance sheet”.
Late last month the company named Malaysian offshore industry veteran Seri Hadian Hashim as its new managing director.
The 61-year-old takes up the post on 3 September. He has taken over over from Captain Hassan Ali who served in the post in a temporary capacity.
Last month, Icon Offshore also announced it was undertaking a cash call to raise up to MYR 250m ($59.8m) and to restructure MYR 370.66m of debt, partly through the issuance of new shares.
It also announced that it would be restructuring its debt by executing supplemental agreements with its various creditors.
The debt restructuring and corporate proposals are intended to reduce the borrowings and improve gearing level from 9.16 times to 1.14 times.
