KUALA LUMPUR (Aug 16): Handal Resources Bhd narrowed its net loss to RM984,000 in the second quarter ended June 30, 2018 (2QFY18), from RM1.3 million a year ago, mainly due to higher revenue and higher operating income for majority of its business segments.

Loss per share improved to 0.62 sen for 2QFY18, compared with 0.81 sen a year ago.

Quarterly revenue rose 25.8% to RM14.98 million, from RM11.91 million in 2QFY17.

For the cumulative six months (1HFY18) however, the group saw its net loss widen to RM1.94 million from RM636,000 a year ago, even though revenue rose by 10.9% to RM29.09 million from RM26.24 million in 1HFY7.

In a filing with Bursa Malaysia today, Handal attributed the weaker first-half earnings to higher administration and operating expenses, and higher depreciation and amortisation cost.

On prospects, Handal said the group's performance is expected to be challenging for the current financial year, in view of the global oil supply situation continuing to influence the industry's outlook.

"However, with the improving oil prices, the group expects market conditions to improve," the filing added.

In a separate filing, Handal said Terry Biusing, 51, has been appointed as an independent and non-executive director of the group, which recently embarked on an internal restructuring exercise. He has 26 years of experience in the oil and gas (O&G) sector, holding various senior positions during his stints with notable industry players, namely Royal Dutch Shell and Petronas Carigali Sdn Bhd.

Handal managing director Sunildeep Singh Dhaliwal said with the latest appointment, Handal has a complete board of directors that represents all oil-producing states in Malaysia.

"The new board will be working hand in hand with the senior management team to execute new directions and strategic plans towards achieving better financial results, moving forward," he said in a statement.

"We are cautiously optimistic since the O&G industry remains challenging with volatile oil prices. Taking this into consideration, we will manage the challenges ahead of us and emerge as a stronger organisation in the near future,” he added. 

At 2.55pm, Handal shares were up 0.5 sen or 1.16% at 43.5 sen, with 395,800 shares done, valuing it at RM70.21 million.