PETALING JAYA: SapuraKencana Petroleum Bhd posted a five-fold jump in net profit to RM509.42mil in the first quarter ended April 30 from RM93.67mil recorded last year, helped mostly by a buying spree in its drilling and energy services arms.
The oilfield services giant declared a dividend of 2.35 sen, comprising a special dividend of one sen per share and interim dividend of 1.35 sen per share. Both payouts will go ex on July 2.
Revenue climbed 50.6% to RM2.44bil versus RM1.62bil a year ago, while earnings per share rose to 8.5 sen from 1.56 sen.
It said in a filing with Bursa Malaysia that group revenue and profit rose due to the inclusion of its tender rig businesses after they were acquired on April 30, 2013, as well as SapuraKencana Energy Inc Group on Feb 11, 2014.
The group also recognised an RM177.8mil gain from its purchase of SapuraKencana Energy, which was formerly known as Newfield Malaysia Holding Inc.
SapuraKencana bought Newfield Malaysia’s upstream oilfields and assets in an RM3bil deal last year.
As at the first quarter, it booked revenue from drilling and energy services totalling RM645mil and RM736.3mil, respectively.
SapuraKencana also accounted for RM156.6mil in operating profits from the drilling division and RM375.8mil from energy services.
Its drilling and energy services business saw operating profits surge more than five times to RM532.39mil in the quarter from only RM97.41mil year-on-year.
Separately, SapuraKencana said yesterday it had bagged two fabrication jobs valued at RM1.3bil to build oil platforms and pipelines offshore Malaysia and Thailand.
This comes fresh on the heels of RM2.3bil in drilling contracts it had won earlier this week.
Its orderbook now stands at RM28.7bil. The firm has clinched about RM5bil so far this year in new international business.
It said Kencana HL Sdn Bhd, a wholly-owned subsidiary, was awarded an engineering, procurement, construction, installation and commissioning (EPCIC) contract for three remote wellhead platforms in the North Malay Basin by Hess Exploration and Production Malaysia B.V.
The job will last for about 25 months. Work is expected to commence in the second quarter of this year and be completed by the third quarter of 2016.
The second EPCIC award involves four wellhead platforms and associated subsea pipelines for JDA Block B-17 and B17-01 Field Phase 3 Development Project by Carigali-PTTEPI Operating Co Sdn Bhd.
Works will be carried out over 39 months starting this month and are scheduled to be completed in September 2017.
SapuraKencana said the new job wins were expected to contribute positively towards the earnings and net assets per share of the group.
For the rest of the year, SapuraKencana said its turnover was expected to reflect an additional three months’ contribution from the tender rigs business as compared to 2014, as well as from Newfields’ producing upstream assets.
The group added that it was set to gain from both existing contracted assets and assets which will be deployed in new markets such as Brazil, Ivory Coast and Republic of Congo.
SapuraKencana closed up five sen to RM4.33, on trade of 10.91 million shares.
Did you find this article insightful?