Perdana Petroleum Q2 2025: Navigating Choppy Waters with Forex Gains Keeping it Afloat
In a quarter marked by project delays and lower vessel usage, Perdana Petroleum Berhad, a key player in Malaysia’s offshore support vessel (OSV) sector, has released its second-quarter financial report for the period ending June 30, 2025. The results present a fascinating picture: while operational revenue faced headwinds, the bottom line remained surprisingly resilient. Let’s dive deep into the numbers to understand what drove this performance and what it signals for the company’s path forward.
The headline story for this quarter is one of operational challenges being offset by favourable financial factors. Revenue saw a significant dip compared to the same period last year, but a substantial unrealised foreign exchange gain provided a crucial cushion, keeping net profit remarkably stable.
Core Data Highlights: A Tale of Two Quarters
Comparing this quarter’s performance to the same period last year reveals a clear divergence between the top and bottom lines. While a slowdown in activity impacted revenue, the company’s profitability held its ground.
Q2 2025 (Current Quarter)
Revenue: RM 83.2 million
Profit Before Tax: RM 41.3 million
Profit After Tax: RM 34.5 million
Basic Earnings Per Share (EPS): 1.55 sen
Q2 2024 (Corresponding Quarter)
Revenue: RM 124.6 million
Profit Before Tax: RM 45.5 million
Profit After Tax: RM 34.7 million
Basic Earnings Per Share (EPS): 1.56 sen
Revenue declined by 33% year-on-year, a drop attributed primarily to a lower vessel utilisation rate, which stood at 52% compared to a robust 89% in Q2 2024. This was caused by delays in project commencements by oil majors and the necessary dry-docking of two Anchor Handling Tug Supply (AHTS) vessels for maintenance. However, the Profit Before Tax (PBT) only saw a minor 9% dip. The key factor here was a significant unrealised foreign exchange gain of RM19.6 million, which helped buffer the impact of lower operational income. This resulted in a net profit that was virtually unchanged from the previous year.
It’s also worth noting that this quarter marked a strong turnaround from the immediate preceding quarter (Q1 2025), where the company posted a loss. The commencement of long-term accommodation work barge contracts in April and May 2025 drove a 122% revenue increase quarter-on-quarter, swinging the company back to profitability.
A Quick Look at Financial Health
A glance at the balance sheet shows a company actively managing its financial position. While total assets and equity have decreased slightly since the end of 2024, the company has successfully reduced its total borrowings and significantly boosted its cash reserves.
| Indicator | As at 30 June 2025 | As at 31 Dec 2024 |
|---|---|---|
| Total Assets | RM 883.3 million | RM 959.8 million |
| Total Liabilities | RM 139.7 million | RM 174.5 million |
| Total Equity | RM 743.6 million | RM 785.4 million |
| Cash & Cash Equivalents | RM 145.0 million | RM 118.6 million |
| Net Assets Per Share | RM 0.33 | RM 0.35 |
The increase in cash and a reduction in debt are positive indicators of prudent financial management and healthy operational cash flow during the period.
Risk and Prospect Analysis: Charting the Course Ahead
Perdana Petroleum operates in a market influenced by global energy trends, geopolitical events, and domestic activity levels. The company’s outlook is cautiously optimistic, balancing market challenges with clear opportunities.
The global oil market is described as stable but challenging, with the U.S. EIA forecasting an average Brent crude price of USD69 per barrel for 2025. Headwinds include geopolitical tensions, US-China trade relations, and currency volatility. Domestically, while some long-term projects were delayed in Q2, the demand for OSV services for production and maintenance activities remains firm and stable.
The key opportunity for Perdana Petroleum lies in the current market dynamics of the OSV sector. A tight supply of vessels, coupled with a lack of new builds entering the market, creates a favourable environment for vessel operators. This supply constraint could support stronger charter rates moving forward. In response to the complex operating landscape, the company is focusing its strategy on operational discipline, cost optimisation, and enhancing fleet efficiency to build resilience and safeguard long-term sustainability.
Summary and Outlook
This section provides a summary of the report’s key points and an outlook on the company’s future. It is for informational purposes only and should not be construed as investment advice.
Perdana Petroleum’s Q2 2025 performance demonstrates resilience in the face of operational headwinds. The significant drop in revenue due to lower vessel utilisation is a point of concern, but the ability to maintain a stable net profit, bolstered by forex gains, is noteworthy. The company’s strong rebound from the previous quarter, coupled with prudent balance sheet management, paints a picture of an agile operator navigating a complex market. The cautiously optimistic outlook, underpinned by tight OSV supply, suggests potential for improvement if market conditions align.
Key factors for investors to watch in the coming quarters include:
- Vessel Utilisation Rates: The commencement of delayed projects is critical to boosting top-line growth and operational profitability.
- Foreign Exchange Volatility: The significant contribution from forex gains this quarter highlights a key variable. Future movements in the USD/MYR exchange rate could either help or hinder profitability.
- OSV Market Dynamics: Whether the tight vessel supply will translate into higher, more sustainable charter rates remains a crucial factor.
- Cost Management: Continued operational discipline will be essential to protect margins against rising costs and market uncertainty.
