Publication source: The Star Online
SapuraKencana Petroleum posted a stronger set of earnings in the third quarter ended Oct 31, 2017 (Q3 FY17) due to the absence of provision for impairments a year ago.
The oil and gas services and solutions provider reported on Thursday that Q3 FY17 earnings rose 21.7% to RM158.06mil from RM129.85mil a year ago.
However, its revenue fell 23.1% to RM2.22bil from RM2.89bil a year ago. Earnings per share were 2.66 sen compared with 2.17 sen.
“The group recorded profit before taxation of RM199.3mil, which was slightly higher than RM198mil in Q3 FY2016.
“Included in Q3 FY2016 profit before taxation was a provision for impairment on property, plant and equipment and oil and gas properties of RM317.3mil, a provision for impairment on investment of RM28.3mil and changes in provision of RM80.9mil,” it explained.
SapuraKencana said its current cash and bank balance was RM2.8bil. The new contract wins in the third quarter of RM1.2bil across all services divisions, increased the total wins to RM4.2bil for the financial year ending Jan 31, 2017.
For the nine months ended Oct 31, 2016, its earnings fell 23% to RM380.63mil from RM494.63mil in the previous corresponding period. Its revenue fell 26.5% to RM5.84bil from RM7.95bil.
Elaborating on the Q3 results, SapuraKencana president and group CEO Tan Sri Shahril Shamsuddin said the group recorded a positive third quarter for the financial year, leveraging on its ability to secure work through existing client relationships and our track record to deliver work safely, on budget and on time.
“Notable contract wins this quarter include the contract extension for the SKD Pelaut working for Brunei Shell Petroleum and ONGC’s B-127 Cluster pipelines in India.
“In Energy, the SK310 B15 field development is on-track with first gas expected in Q4 2017 and we are currently progressing on the SK408 development,” he said.
Shahril said while the industry outlook remains uncertain in the short term, there are now early indications that oil price is heading towards a path of relative stability in the medium term.
In the short term, competition for work will remain intense and margin pressures will likely to continue through into the next year.
“We continue efforts to further enhance our competitiveness in the market, and remain committed to our initiatives towards increasing productivity and efficiency. The measures we take now are to maintain our agility in this challenging environment and ensure long-term sustainability for the group,” he added.