The pre-tax profit is 38.6% lower than corresponding period in 2015, due to lower contributions from its Power and Machinery segment and the share of results from associate companies.
The Power and Machinery (P&M) segment recorded a lower segment results of RM23.0 million for the period under review as compared to RM44.6 million in the corresponding period as a result of lower revenue and foreign exchange losses compared to gains earned in the corresponding period.
The Oilfield Services (OS) segment logged a higher segment results of RM10.6 million for the nine months ended 30 September 2016 against RM7.6¬¬¬ million in the corresponding period mainly due to reduced finance costs on account of lower borrowings through scheduled repayments and foreign exchange gains.
The Integrated Corrosion Solution (ICS) segment turned around its segment results from a loss of RM0.4 million in the corresponding period to a profit of RM0.7 million in the current period as costs to serve were lower as the benefits of the cost reduction initiatives implemented in the current financial period began to gain traction.
Crude oil prices in 2016 is expected to stay volatile and have entered into a period of prolonged low prices. The trend is expected to continue in 2017. In the light of these challenges, the Group will continue to be vigilant and focus on reducing costs and working capital, and to conserve free cash.