KUALA LUMPUR: Icon Offshore Bhd's profit has reverted to its 2014 glory days, with offshore support vessel (OSV) utilisation rate improving and maiden contribution from its jack up rigs, Affin Hwang Capital said.
The firm said Icon Offshore had seen a strong earnings turnaround with a high offshore support vessel (OSV) active utilisation rate coupled with maiden contribution of its newly-acquired jack up rig.
Affin Hwang said Icon Offshore reported an all-time high revenue of RM81 million and RM87 million in the second quarter (Q2) and Q3 of financial year 2021 (FY21).
Icon Offshore's Q3 FY21 core profit rose 23 per cent quarter-on-quarter to RM16 million from RM13 million in Q2 FY21.
Icon Offshore's total outstanding order book of RM771 million translates to 3.6x cover ratio of its FY20 revenue, providing Icon with an earnings visibility over the next three years.
Affin Hwang said being the largest OSV player and one of the two in the jack up market duopoly in Malaysia, Icon Offshore believed prioritisation over local vessels and rigs would be beneficial to them, riding on the higher oil price environment.
"It currently operates 21 active OSV vessels in both Malaysia and Brunei waters.
"Eighteen of the vessels are under long-term charter which provide steady recurring multi-year earnings visibility, while three vessels are on short-term charter.
"Icon Offshore recorded an active utilisation rate of 90 per cent in the nine-month of 2021, higher as compared to the rest of the OSV companies, supported by its integrated logistics control tower long-term contract with Petronas.
"Its list of clients includes Petronas, Shell, ExxonMobil and PTTEP," Affin Hwang said.
Icon Offshore is not rated by Affin Hwang.