The Group’s Power and Machinery (P&M) segment saw segment results eased by RM1.0 million to RM10.0 million in Q1FY2016 due to downward pressure on margins.
The Oilfield Services (OS) segment results was lower by RM0.2 million to RM2.3 million in Q1FY2016 on the account of reduced revenue and margins from oilfield chemicals and slickline activities as customers cut back on operating expenditures in response to low oil prices.
The Integrated Corrosion Solution (ICS) segment recorded a reduced loss of RM0.6 million in Q1FY2016 as compared to a loss of RM2.9 million in the corresponding period as blasting and other corrosion- related services picked up.
The challenging conditions in the first quarter are expected to remain for the rest of this financial year. The Group’s key customers will continue to recalibrate operations to preserve cash and rein in operations and investments. The Group’s performance is expected to be softer compared with the previous financial year.
The Group will continue with the cost-saving measures implemented, defer non-critical capital spending and monitor closely working capital and cash flows to meet scheduled commitments.