Publication source: The Star Online
SapuraKencana Petroleum Bhd reported earnings of RM112.26mil in the second quarter ended July 31, 2016 (FY ending January 2017) from a year ago when there was a provision for impairment on oil and gas properties totalling RM539.9mil then.
The oil and gas heavyweight announced on Wednesday its earnings were up 7.8% from the RM104.27mil a year ago.
SapuraKencana said revenue fell 40.2% to RM1.67bil from RM2.80bil a year ago. Earnings per share were 1.89 sen compared with 1.74 sen a year ago.
“The group recorded profit before taxation of RM186.7mil, which was RM125.5mil higher than RM61.1mil in Q2, FY2016 due to the higher profit before taxation from energy business segment. Included in Q2, FY2016 profit before taxation was provision for impairment on oil and gas properties of RM539.9mil,” it said.
It said the engineering and construction sement recorded a 51.4% fall in revenue at RM796.7mil from the RM1.638bil a year ago due to lower activities. Profit before taxation fell 63.7% to RM120.1mil from RM330.5mil a year ago.
“The decrease is in tandem with the lower revenue and its corresponding scope of works, offset by higher contribution from the joint venture companies,” it said.
The drilling segment's revenue fell 31.4% to RM537.7mil, which was RM246.1mil or 31.4% lower than RM783.8mil a year ago, mainly due to the lower revenue from certain rigs which were off contract during the current quarter. The segment profit before taxation of RM50.3mil was77.4% lower than RM222.5mil a year ago due to the lower revenue.
SapuraKencana's energy segment reported profit before taxation of RM50.3mil was 77.4% lower than RM222.5mil a yeare ago due to the lower revenue. The revenue was RM353.3mil, down RM96.7mil from RM449.9mil a year ago, due to the lower average realised oil price achieved in the current quarter.
The profit before taxation of RM52.6mil was RM528.6mil higher than a year ago. This was because a year ago, the company recorded a loss before taxation due to a provision for impairment on oil and gas properties of RM539.9mil.
“Excluding the provision for impairment on oil and gas properties of RM539.9mil in Q2FY2016 (ended July 31, 2015), the segment's profit before taxation was lower by RM11.3mil or 17.6% as compared to RM63.9mil recognised in Q2 FY2016, in line with the lower revenue in the current quarter,” it said.
In the first half ended July 31, 2016, SapuraKencana's group revenue fell 28.5% to RM3.617bil from RM5.061bil in the previous corresponding period. Profit before tax fell 21.7% to RM311.3mil from RM397.5mil, reflecting the lower revenue. It said that a year ago, there was a provision for impairment on oil and gas properties of RM539.9mil.
SapuraKencana said the revenue of RM1.67bil in the second quarter ended July 31, 2016 was 13.7% lower than the RM1.94bil in the first quarter due to lower activities in the engineering and construction busines segment and certain contracts which were off contract in the drilling business segment. The group before taxation of RM186.7mil was up 49.8% from the RM124.6mil a year ago.