Coastal Contracts 1Q Profit Jumps on Forex Gain

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Posted December 4, 2018

Shipbuilder and repair company Coastal Contracts Bhd's net profit jumped five times to RM17.1 million in its first quarter ended Sept 30, 2018, from RM3.27 million a year ago, largely due to the recognition of a foreign exchange gain compared to a loss previously.

Its revenue, however, fell 23% to RM37.13 million from RM48.07 million a year ago, mainly as topline from its shipbuilding and ship repair division slumped to RM1.6 million from RM10.8 million, on the absence of shipbuilding revenue, its Bursa Malaysia filing today showed.

Its vessel chartering division's revenue also retreated, albeit by a marginal 5%, to RM35.5 million from RM37.3 million.

Going forward, Coastal Contracts said it will maintain its diversified portfolio and sharpen its focus on the oil and gas downstream sector in pursuit of growth while enhancing its long-term sustainability.

Coastal Contract's shares slid 2 sen to close at 89.5 sen today, for a market capitalisation of RM472.03 million. In the past one year, the stock has retreated about 34%.

Source: The Edge Markets