KUALA LUMPUR (Nov 20): Perdana Petroleum Bhd continued to sustain losses in its third quarter ended Sept 30, 2020 (3QFY20), with net loss expanding to RM30.52 million from RM2.88 million in the immediate preceding quarter (2QFY20).

The deeper loss came as vessel utilisation rate declined further to 50% from 58% in 2QFY20, amid the ongoing pandemic, which slowed the award of work orders and dragged the group's revenue down 13% to RM52.45 million from RM60 million.

Additionally, it made additional allowance for impairment losses on its property, plant, and equipment that amounted to RM17.9 million. Also weighing on its financials was a deferred tax expense of RM10.3 million, it noted in a stock exchange filing.

In contrast with a year ago, Perdana Petroleum made a net profit of RM18.09 million, when revenue was higher by 40% at RM87.41 million, and vessel utilisation was at 91%.

For the nine months ended Sept 30, 2020 (9MFY20), Perdana Petroleum's net loss more than doubled to RM47.3 million from RM20.29 million in 9MFY19, though revenue dipped only 2% to RM172.12 million from RM175.95 million.

Perdana Petroleum said its latest quarterly losses came as no surprise, given sluggish oil and gas (O&G) activities amid high uncertainties involving economic and geopolitical factors.

“Recognition of impairment loss on the group’s vessels in the third quarter is inevitable, as our chartering business has not been able to go on full throttle yet. Nonetheless, with the price of crude oil hovering around US$40 per barrel currently, the board remains hopeful that the sentiments will improve, moving forward," it said.

Having said that, it noted that the recent reimposition of the Conditional Movement Control Order (CMCO) as well as the seasonal monsoon season will affect its chartering business in the fourth quarter of 2020.

"Nevertheless, Perdana Petroleum remains cash flow positive, as the group strives to maintain high liquidity to sustain its business,” it said on its prospects.

Perdana Petroleum shares slipped 3.33% or half a sen lower to close at 14.5 sen today, valuing it at RM321.13 million. It saw 5.22 million shares transacted.