SapuraKencana Petroleum Berhad (“SapuraKencana”, “Company” or “Group”), announces its third quarter results for the period ended 31 October 2016 (for financial year ending 31 January 2017).
Highlights
Revenue for third quarter of RM2.2 billion
Profit before tax for the quarter of RM199 million
Current orderbook of RM17.2 billion
Current cash and bank balance of RM2.8 billion
New contract wins in this quarter of RM1.2 billion across all services divisions, bringing total wins to RM4.2 billion for the financial year
Tan Sri Dato’ Seri Shahril Shamsuddin, President and the Group Chief Executive Officer said:
“The Group recorded a positive third quarter for the financial year, leveraging on our 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.
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.”
Recent developments
Energy
SK310 B15 field development on track with first gas expected in Q4 2017
Progressing on SK408 development plan
Services
New contract wins in key markets, including Malaysia, India, Vietnam
New contract extension in drilling for SKD Pelaut in Brunei
All six Pipelay Vessels (“PLVs”) are in operation in Brazil with average fleet utilisation rate of 98%