Barakah Offshore Petroleum Bhd received a disclaimer of opinion from its independent auditor, HLB Ler Lum Chew PLT, regarding the "going concern" assumption in its financial statements for the fiscal year ended June 30, 2023, despite incurring a net loss of RM4 million for the year.
The auditor noted that the Practice Note 17 (PN17) company's current liabilities exceeded its current assets by RM18.21 million, with a deficit of shareholders' funds amounting to RM15.05 million, indicating a material uncertainty about the group's ability to continue as a going concern.
Barakah outlined measures taken to address this concern, including exploring business opportunities with non-oil and gas customers and securing contract extensions.
The company expects to resolve the material uncertainty in the subsequent financial year.
Barakah's shares closed 27.27% lower at 4 sen today, with a market capitalisation of RM36.77 million.