SapuraKencana Petroleum Berhad (“SapuraKencana”, “Company” or “Group”), announces its first quarter results for the period ended 30 April 2016 (for financial year ending 31 January 2017).
Highlights
Revenue for first quarter of RM1.9 billion.
Profit before tax for the quarter of RM125 million.
Current orderbook of RM20 billion.
Current cash and bank balance of RM2.3 billion, an increase of RM390 million from the previous quarter.
New contract wins in this quarter of approximately RM2.1 billion across all Services divisions.
Recent developments
Energy
New gas discoveries in SK408 significantly add to the total gross gas reserves and resources for SK Energy.
SK310 B15 Gas Sales Agreement signed, first gas expected by fourth quarter of 2017.
Services
Fabrication work for the newly-awarded SK310 B15 well-head platform initiated in Lumut yard.
New contracts secured in drilling include SKD Esperanza for Shell Malikai (the first Malaysian Tension-Leg Platform) and SKD Berani for JX Nippon in Malaysia.
Extension of a drilling contract for SKD Jaya with BP in Trinidad & Tobago.
Delivery of the Sapura Rubi (the 6th and final vessel for our Brazil operations) from the Royal IHC Shipyard in Rotterdam, with a contractual start offshore Brazil in August 2016.
New Service Offerings
SKGE joint-venture secured a 10-year contract for maintenance of turbomachinery onboard PETRONAS FLNG 1.
Light-well intervention and decommissioning work secured from Royal Dutch Shell and Woodside Petroleum Limited in Australia.
Tan Sri Dato’ Seri Shahril Shamsuddin, President and the Group Chief Executive Officer said:
“Despite this highly challenging and competitive environment, we have secured new projects in Malaysia, Australia and the Americas. The Group has strengthened its market reach and core capabilities in key geographic locations. We have secured contracts that leverage our new service offerings which include light well intervention, decommissioning work and notably the deployment of SKD Esperanza on Malaysia’s first Tension-Leg Platform Project, Malikai.
Our continued ability to win projects is due to our commitment to re-basing costs, achieving operational efficiency and increased productivity to ensure operations remain competitive. One of the key initiatives currently in execution is the Group-wide transformation. It is focused on cross-pollination of expertise across SKPB, enhancing our ability to deliver fit-for-purpose solutions for our customers.
Our Energy division has recently made additional gas discoveries in block SK408 offshore Sarawak. These significant finds further add to the Group’s gross total gas reserves and resources, providing long-term visibility of revenues. In addition, the Gas Sales Agreement with PETRONAS for the SK310 B15 field is a major milestone in our plans to commercialise SKPB’s gas portfolio.
SKPB will continue its transformation to ensure resilience during this challenging period and will be well-positioned for the recovery in the industry.”