Icon Offshore posts RM14.6m in net profit for 2Q on strong drilling segment contribution

by PRIYA VASU / pic credit: iconoffshore.com.my

ICON Offshore Bhd posted a net profit of RM14.6 mil for the second quarter ended 30 June 2021 (2Q21) against RM6.8 mil made a year ago.

Its revenue for the quarter under review jumped 45.9% to RM81.7 mil mainly due to the drilling segment commencing its operation in the current quarter.

“With the strong momentum gained in FY2020, ICON will focus on three pillars in FY2021. Firstly, our offshore support vessel (OSV) segment in Malaysia which is largely supporting production activities. The contracts have been extended for another year and we will continue to improve our utilisation and optimise our cost structure in mining the value of these contracts,” said ICON’s Managing Director, Datuk Seri Hadian Hashim.

He added the company has also completed the repositioning of Accomodation Workboats (AWBs) to work in Brunei which are backed by its long term contracts.

“The execution of these contacts is our primary focus. We are happy to note that we are supported by a strong and reliable local joint venture partner, who have demonstrated commendable execution capability,” he added.

Icon completed its drilling business acquisition in February 2021 which was fully operational in Q2.

“As seen in Q2 results, this segment will provide a substantial contribution to our revenue and bottom line moving forward. Our plan is to increase this segment’s contribution through integrated well services offering,” said Hadian.

The company also plans to expand beyond OSV and drilling business segments by exploring M&A opportunities particularly in services oriented and asset-light businesses.

Icon’s order book as at 30 June 2021 stands at RM830.6 million, comprising RM765.7 mil for OSV segment and RM64.9 mil for drilling segment.

Its long term contracts represents 99% of the order book which will provide cashflow stability and earnings visibility, the company noted in a filing to Bursa Malaysia.