PETALING JAYA: SapuraKencana Petroleum Bhd’s net profit rose 8.61% to RM445.8mil for the second quarter to July 31 on the back of higher contributions from its offshore construction and subsea services (OCSS) division combined with contributions from Sapura Kencana Energy Inc (SKEI).
On Feb 11, SapuraKencana completed the US$896mil (RM3bil) acquisition of SKEI, formerly known as Newfield Malaysia Holding Inc.
Meanwhile, its revenue increased 8.21% to RM2.69bil. The marginal increase was due to lower contributions from the fabrication, hook-up and commissioning (FHUC) division.
For the quarter, earnings per share increased to 7.44 sen from 6.85 sen.
Figures for the first half were more impressive, with net profit jumping a whopping 89.48% to RM955.22mil on the back of a 24.93% increase in revenue to RM5.14bil. Earnings per share increased to 15.94 sen from 9.17 sen.
Looking at SapuraKencana’s numbers for the second quarter, OCSS and drilling and energy services (DES) contributed RM1.08bil and RM1.18bil, respectively, to revenue, while FHUC delivered RM496.9mil.
Operating profit-wise, the DES segment was the most profitable, delivering RM303.68mil, while the OCSS segment accounted for RM209.97mil. The FHUC segment recorded operating profit of RM72.8mil.
As of the period, SapuraKencana had long-term borrowings of RM13.96bil and short-term borrowings of RM1.29bil.
In a statement, SapuraKencana president and group chief executive officer Tan Sri Shahril Shamsuddin said that SapuraKencana’s cash balance had increased from RM1.4bil to RM1.6bil in the last six months, with all divisions generating positive cashflows for the group.
“We are comfortable with the fact that the group’s investments continue to deliver strong earnings before interest, depreciation, taxation and amortisation to service our debt and planned reduction of current gearing levels,” said Shahril.
He added that the drilling division continued to be a strong contributor to group profit and cashflow, due to high utilisation rates of its tender and semi-tender rigs backed by long-term contracts.
“The OCSS division clocked a key milestone in our international operations, by starting in Brazil ahead of schedule. The first of our six pipe-laying support vessels commenced operations for Petrobras in June 2014.
“Jointly, the OCSS and FHUC divisions have in recent months secured various major engineering, procurement, construction, installation and hook-up/commissioning contract wins within the region, with a total value of RM1.5bil,” said Shahril.
He added that looking forward to 2015, SKEI would drill another five wells in SK408.
Early this month, SKEI discovered gas at Bakong-1, the fifth and final well in its 2014 drilling campaign within the SK408 production-sharing contract area offshore Sarawak.
The newest finding brings the total gas discovered to more than three trillion standard cu ft of gas in-place.
“The group maintains a healthy order-book, which stands at RM27bil, and is optimistic of its ability to capture further growth opportunities in key growth regions. The producing upstream assets will continue to positively contribute to the group’s results,” he said.
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