KUALA LUMPUR: Borneo Oil Bhd (BornOil) posted a strong set of results for its second quarter (Q2) ended 31 December 2021 (FY21) with net profit soaring almost ten folds to RM10.27 million from RM1.68 million posted in FY20.

Revenue increased to RM18.37 million for the quarter from RM10.01 million posted in the same quarter last year.

Subsequently, BornOil posted a net profit of RM14.06 million for the six months (6M) of FY21, a sharp turnaround from the RM3.52 million loss posted in FY20.

In a statement to Bursa Malaysia, BornOil recorded a profit before tax of RM10.79 million due to the fair value gain on quoted securities of RM12.12 million for its Q2.

Meanwhile, its food and franchise operations posted a revenue of RM12.52 million and a profit before tax of RM0.31 million for the quarter, against revenue of RM9.29 million and a loss before tax of RM2.55 million for the previous corresponding quarter.

The higher reported revenue was mainly due to the gradual lifting of dine-in restrictions under the National Recovery Plan and the festive season during the current quarter, said the company.

Meanwhile, BornOil's property investment and management segment registered revenue of RM4.86 million for the quarter with the resumption of installation activities on-site for the project management of an integrated limestone processing plant.

Despite the segment had not fully resumed its activities on the plant site, it managed to reduce the losses to the minimum with its effective cost-cutting measures.

BornOil's resources and sustainable energy division reported revenue of RM0.98 million and a loss before tax of RM0.70 million for the quarter, against revenue of RM0.62 million and a profit before tax of RM7.50 million for the period last year.

In December 2021, BornOil executive director Datuk Joseph Ambrose Lee emerged as the company's largest shareholder.

"BornOil has a solid asset base. Its net tangible asset is RM0.11 per share with total assets of RM824 million against total liabilities of just RM56 million," said Joseph.

"The company is lowly geared with just under RM20 million of short term and long term borrowings with a comfortable cash position. What's more, it also has a long term growth strategy and business philosophy of sustainable existence," he said.

© New Straits Times Press (M) Bhd