KUALA LUMPUR (May 21): Perdana Petroleum Bhd's net profit plunged 60.8% to RM8.64 million or 1.17 sen a share for the first quarter ended March 31, 2015 (1QFY15) from RM22.016 million or 3.01 sen a share a year ago, mainly due to lower vessel utilisation resulting from slower work orders/contracts from oil majors which had been affected by the decline in crude oil prices.

Revenue also fell by 20.4% to RM69.51 million from RM87.27 million in 1QFY14.

In a filing with Bursa Malaysia today, Perdana Petroleum said the global economy and the prospects of oil and gas operators and service providers continue to face challenges as the fluctuation in the oil price environment remains uncertain.

"Any prolonged and continued decline in the oil price could result in oil companies cutting back on exploration budgets and moderating development capital expenditures. This could lead to a slow-down in new project awards," it said.

However, Perdana Petroleum pointed to its young fleet of offshore support vessels with an average age of 5.2 years.

"Currently, more than half of our fleet are under long term contract with some up to 2019 and our tendering activities remain robust. We believe all these will continue to provide the longer-term charter opportunities and stability we required amid the uncertainty.

"Nevertheless, the group will continue to focus on stronger operational excellence and financial discipline and the board remains confident that the long-term fundamentals of the O&G industry remains encouraging and will drive continued development and spending in the segments that our business operate in," Perdana Petroleum added.

The stock closed 0.65% or one sen lower at RM1.52 today, giving it a market capitalisation of RM1.38 billion.