KUCHING: Perdana Petroleum Bhd (PPB) has sustained its group net profit of about RM34.54 million in second quarter ended June 30, 2025 (2Q2025) despite a sharp drop in group revenue by about RM41.4 million, thanks to an unrealised foreign exchange gain of RM19.6 million.
Group revenue plunged to RM83.24 million from RM124.6 million (2Q2024). In 2Q2024, group net profit was marginally higher at RM34.7 million.
Earnings per share was RM1.55sen as compared to 1.56sen in 2Q2024.
In the current quarter under review, PPB blamed the RM41.4 million (-33%) drop in group revenue to lower utilisation rate of marine vessels (52% versus 89% in 2Q2024) and reduced third-party vessel chartering income (RM18 million versus RM31.1 million).
“The downturn was largely attributed to delays in project commencement by oil majors.
Additionally two AHTS (anchor handling tug supply) vessels were placed in drydock in April and June 2025 for Ship Class extension works,” the company said in explanatory notes to its financial results.
Despite the shrinking revenue, the group recorded pre-tax profit of RM41.3 million (2Q2024:RM45.5 million) supported by a gross profit of RM24.9 million and unrealised foreign exchange gain of RM19.6 million.
“The lower gross profit compared to the previous year was primarily due to reduced revenue and a weaker contribution from third-party vessel chartering.
Direct vessel costs remained comparable year-on-year as the impact of higher bunker prices was offset by the lower utilisation rate.
“Lessening the pressures of declining chartering revenue was an increase in ancillary income, driven by catering services, mobilisation activities as well as reimbursable,” said PPB, a subsidiary of Dayang Enterprise Holdings Bhd.
As compared to the immediate preceding quarter (1Q2025), PPB had done well in 2Q2025 as it rebounded to profitability.
In 1Q2025, PPB poste group net loss of RM18.33 million (2Q2025:+RM34.54 million) on lower revenue of RM37.56 million (RM83.24 million).
PPB said the strong revenue growth in 2Q2025 was driven by significant higher vessel utilisation rates at 52 per cent (1Q2025:31%) and this was largely attributed to the commencement of longterm accommodation work barge contracts in April and May 2025.
The group recorded pretax profit of RM41.34 million (-RM16.53 million) as the improved performance in 2Q2025 was supported not only by stronger margins from increased vessel utilisation rates but also by higher net realised and unrealised foreign exchange gains as the ringgit strengthened against the US dollar, contributing RM19.6 million to pretax profit (RM3.4 million).
Company’s managing director Jamalludin Obeng said the 2Q2025 marked a turning point for PPB with improved vessel utilisation rate as most of the group’s vessels returned to active service.
“This momentum follows the successful completion of preparation and mobilisation works for upcoming long-term charters, reflecting our focus on vessel readiness and operational efficiency after a slow start to the year,” he added in a media release.
PPB said domestically, Malaysia’s upstream oil and gas activities saw an adjustment in momentum, with activities progressing at a slower pace in 2Q2025 than expected, primarily due to the delayed commencement of several longterm contracts.
“Despite a slowdown in the exploration activities, demand for offshore support vessel (OSV) services for the production and maintenance activities remained firm, driven by on-going offshore maintenance, platform support, and gas development projects.
This underscores a domestic energy landscape that remains fundamentally stable although industry operators continue to face cost pressures, increased scrutiny from ESG-driven investment mandates, and elevated operational risks.
“The OSV sector is also navigating a challenging environment with sustained pressure across multiple fronts, yet the market continues to exhibit signs of stability mainly driven by consistent demand for offshore maintenance and production support.
“Nonetheless, the broader operating landscape remains complex, influenced by persistent geopolitical uncertainties, including the Middle East tensions, escalating trade and tariff disputes and volatility in the US dollar/ ringgit exchange rate,” it added Jamalludin said the global oil market remains stable but challenging, shaped by higher supply, modest demand growth and on-going geopolitical tensions.
“Brent crude is forecast to hover around US$68 per barrel while risks from Middle East instability, US-China trade frictions and currency volatility continue to weigh on the market,” he added.
Jamalludin said the OSV market remains tight due to limited new build vessels and constrained supply, which supports a cautiously positive outlook.
“While the broader operating environment remains complex, the tight OSV supply and consistent demand for maintenance and production support present opportunities for strategic positioning.
We remain committed to operational discipline, cost optimisation and enhancing vessel efficiency to maintain resilience, ensuring long-term sustainability and create long-term value for our stakeholders,” he said.
On a six-month basis in 2025 (1H2025), PPB group net profit slumped to RM16.21 million (1H2024) in line with a sharp contraction in group revenue to RM120.8 million (RM223.8 million).
