Ocean Vantage sees net profit of RM2.17 million for the first quarter of 2020

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KUCHING: Sarawak-based oil and gas (O&G) integrated support services provider, Ocean Vantage Holdings Bhd (Ocean Vantage) registered a revenue of RM15.08 million in the first quarter ended March 31, 2020 (1Q20).

The positive earlings was primarily contributed by the supply of manpower segment, accounting for 65 per cent or RM9.88 million of total revenue, followed by revenue from EPC and project management segment (28 per cent or RM4.20 million) and supply of material, tools and equipment segment (7 per cent or RM1.00 million). Profit after tax stood at RM2.17 million.

The group in a statement said there are no comparative figures for the preceding year’s corresponding period available as this is the first interim financial report to Bursa Malaysia Securities Bhd in conjunction with its upcoming initial public offering (IPO) exercise on the ACE Market.

The froup’s financial position remains solid in net cash position of RM4.26 million prior to its listing. Ocean Vantage continued to generate positive net operating cash flow of RM4.30 million during the quarter under review. In terms of gearing, the Group remains in a healthy level of approximately 0.1 time as of March 31, 2020.

Managing director of Ocean Vantage, Kenny Ronald Ngalin said, “Our business performance remains supported by the demand for our supply of manpower services as well as our EPC and project management segment from upstream oil and gas players.

“We believe the demand for our services will continue to be favorable and well sought after given the shift in the current operating landscape.”

“During the Movement Control Order, there were minimal disruptions to our operation as our business was deemed essential services. In fact, we were busy filling in the supply and demand gap for support services in Malaysia following the closure of borders, which has prevented foreign industry players from entering.

“Despite the current challenging environment that is expected to remain in the near term, we are cautiously optimistic that Ocean Vantage is able to withstand the short-term headwinds and is well-positioned to capture opportunities as the market recovers. We are now just a few days away from our listing on the ACE Market of Bursa Securities, and as such, we are very excited to embark on our next journey of growth,” he concluded.

Ocean Vantage is slated to be listed on the ACE Market of Bursa Securities on Wednesday, 22 July 2020. Upon listing on the ACE market, Ocean Vantage will have a market capitalisation of RM106.86 million based on the issue price of RM0.26 and its enlarged share capital of 411,000,000 Shares.

From the IPO exercise, Ocean Vantage will be raising approximately RM21.37 million from its public issue to support its expansion in the upstream and downstream of oil and gas segments.