The reduction was attributed to the weaker performance from the Power and Machinery and Oilfield Services segments, offset partially by the increase in contribution from Integrated Corrosion Solution segment.
The Group’s Power and Machinery (P&M) segment saw its segment results reduced by RM5.8 million to RM4.2 million in Q1FY2017 due to lower revenue recorded and foreign exchange losses.
The Oilfield Services (OS) segment results was down by RM2.0 million affected by lower demand for slickline and well intervention and enhancement activities as customers cut back on operating expenditures.
The Integrated Corrosion Solution (ICS) segment recorded a marginal segment profit of RM26,000 as opposed to a loss of RM0.6 million recorded in the corresponding quarter. This was attributed to the higher revenue recorded coupled with the improvement in operating efficiencies.
While the Group’s working capital had decreased in tandem with the lower activities, its liquid assets have improved compared with the position at the beginning of the financial year and borrowings repaid on schedule.
Looking ahead, trading condition is expected to remain challenging. The Group will continue to make the necessary adjustments to meet the challenges.