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Navigating Choppy Waters: A Deep Dive into Carimin Petroleum Berhad’s Q3 FY2025 Performance
May 27, 2025
Hello fellow investors and market enthusiasts! Today, we’re putting Carimin Petroleum Berhad’s latest financial report under the microscope. The Malaysian oil and gas services provider has just released its unaudited results for the third quarter ended 31 March 2025 (Q3 FY2025), and while the headlines might suggest a challenging period, a closer look reveals a company actively adapting to a dynamic market.
The report indicates a significant decline in revenue and a shift to a loss before taxation for the quarter. However, the company is strategically positioning itself for future growth with new contract activations and a focus on long-term stability. Importantly, Carimin Petroleum Berhad has also announced an interim dividend, signaling a commitment to shareholder returns amidst a transitional phase. Let’s break down the numbers and understand what’s truly happening.
Core Data Highlights: A Mixed Bag
Carimin Petroleum Berhad’s Q3 FY2025 saw a notable contraction in its top and bottom lines when compared to the same period last year. This was largely anticipated given the conclusion of major contracts and the nascent stages of new projects.
Quarterly Performance (Q3 FY2025 vs Q3 FY2024)
Q3 FY2025
Revenue: RM26.13 million
Profit Before Tax: RM(2.47) million (Loss)
Profit After Tax: RM(2.55) million (Loss)
Basic Earnings Per Share: (1.09) sen
Q3 FY2024
Revenue: RM56.46 million
Profit Before Tax: RM15.74 million
Profit After Tax: RM15.12 million
Basic Earnings Per Share: 6.47 sen
This represents a substantial 54% decrease in revenue quarter-on-quarter, primarily due to the expiry of its Maintenance, Construction, and Modification (MCM) and Integrated Hook-Up and Commissioning (iHUC) services contracts. The shift to a loss before tax from a profit in the prior year’s corresponding quarter is stark, especially considering Q3 FY2024 included a significant impairment reversal of a vessel.
Year-to-Date Performance (9M FY2025 vs 9M FY2024)
9 Months FY2025
Revenue: RM179.04 million
Profit Before Tax: RM12.13 million
Profit After Tax: RM11.24 million
Basic Earnings Per Share: 4.81 sen
9 Months FY2024
Revenue: RM243.20 million
Profit Before Tax: RM29.53 million
Profit After Tax: RM27.76 million
Basic Earnings Per Share: 11.88 sen
For the cumulative nine months, the trend is similar, with revenue declining by approximately 26% and profit before taxation by about 59%. This highlights the impact of the contract transitions over a longer period.
Segmental Performance: A Closer Look
The report provides a clear breakdown of how each business unit performed:
| Business Unit | Q3 FY2025 Revenue (RM’000) | Q3 FY2024 Revenue (RM’000) | Change (RM’000) | Percentage Change |
|---|---|---|---|---|
| Manpower services (MPS) | 9,625 | 14,777 | (5,152) | (35%) |
| Const, HUC & TMM (CHUCTMM) | 12,760 | 38,792 | (26,032) | (67%) |
| Marine services (MS) | 3,747 | 2,891 | 856 | 30% |
The significant drops in Manpower services and Construction, Hook-Up & Commissioning, and Topside Major Maintenance (CHUCTMM) divisions underscore the impact of expiring contracts. The good news, however, is the Marine services division, which saw a healthy 30% increase in revenue, supported by the utilisation of its Anchor Handling Tug Supply (AHTS) boat.
Financial Health: Balance Sheet and Cash Flow
Despite the dip in profitability, Carimin Petroleum Berhad’s balance sheet shows resilience. As at 31 March 2025, Total Assets stood at RM351.83 million, a slight increase from RM345.77 million as at 30 June 2024. Total Equity also saw an increase to RM235.98 million from RM227.34 million, leading to a higher Net Assets Per Share of 100.48 sen (compared to 97.18 sen).
Cash flow from operating activities for the nine months ended 31 March 2025 was RM15.24 million, which is a positive sign, though lower than the RM31.89 million generated in the full financial year 2024. The company’s cash and cash equivalents stood at RM60.76 million at the end of the period, indicating a healthy liquidity position.
Risks and Prospects: Navigating the Future
The oil and gas industry is inherently exposed to global geopolitical and economic conditions, and Carimin Petroleum Berhad is no exception. However, the domestic outlook for the company remains positive, primarily driven by the activation of new contracts under the Pan-Malaysia MCM HUC services.
To support these new contracts, the Group has proactively established its presence in key locations like Labuan, Miri, and Bintulu, and is developing its own yard in Labuan complete with new inventory of tools and equipment. This strategic expansion is crucial for fulfilling the demands of the new projects.
Furthermore, the marine division has secured a significant 4-year charter contract for its AHTS vessel. This long-term contract is expected to provide much-needed income stability for the Group, mitigating some of the volatility experienced in other segments.
The company is also actively exploring and pursuing sustainable business opportunities and investments that are expected to generate positive financial returns in the future.
Shareholder Returns: A Positive Signal
In a clear signal of confidence and commitment to its shareholders, Carimin Petroleum Berhad announced an interim dividend of 2.0 sen per ordinary share for the financial year ending 30 June 2025, amounting to RM4.68 million. This dividend is scheduled to be paid on 10 July 2025. This move suggests that despite the current quarter’s challenges, the management sees a stable financial footing and a positive future outlook, allowing them to continue rewarding investors.
Summary and
Carimin Petroleum Berhad’s Q3 FY2025 results reflect a period of transition, marked by the winding down of older contracts and the ramp-up of new ones. While the quarterly performance shows a decline in revenue and a loss, the cumulative nine-month figures still indicate profitability, albeit reduced. The proactive steps taken by the company to establish new operational bases and secure long-term contracts, particularly in its marine division, demonstrate a clear strategy to adapt and grow in the evolving oil and gas landscape.
The announcement of an interim dividend is a strong indicator of the company’s financial health and its dedication to shareholder value, even as it navigates this transitional phase. For retail investors, understanding these strategic shifts and the company’s forward-looking initiatives is key.
Key points to consider moving forward:
- The impact of expiring major contracts (MCM, iHUC) on current revenue has been significant.
- New Pan-Malaysia MCM HUC services contracts are in their early stages of work order activation, suggesting potential for future revenue growth.
- The Manpower Services division has seen reduced demand due to contract completion.
- The Marine Services division has shown resilience and growth, securing a long-term charter contract.
- An unscheduled docking for repairs of the ACACIA accommodation workboat contributed to the quarterly loss.
- The broader oil and gas industry remains susceptible to geopolitical and economic conditions.
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