Thursday 28 Mar 2024
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KUALA LUMPUR (Dec 22): SapuraKencana Petroleum Bhd saw its net profit for the third quarter ended Oct 31, 2015 (3QFY16) fall 62.73% to RM129.86 million or 2.17 sen per share due to provision for impairment on property, plant and equipment and oil and gas (O&G) properties of RM317.3 million.

SapuraKencana posted a net profit of RM348.4 million or 5.81 sen per share in 3QFY15.

Excluding the RM317.3 million impairment loss, the group recorded profit before taxation of RM462.7 million, which was RM51.7 million or 12.6% higher than the RM411 million recognised in 3QFY15.

Aside from the impairment provision, the O&G services provider told Bursa Malaysia in a filing today that the lower profit before taxation from the energy division has also weighed down its net income.

But it was partially cushioned by higher contribution from the engineering and construction (E&C) division, it said.

Revenue for the quarter improved 19.92% to RM2.89 billion from RM2.41 billion a year earlier attributable to higher revenue recorded by the E&C division, driven by newly executed international projects combined with higher scope of works for domestic projects.

No dividend was declared for the current quarter under review. It paid a two sen dividend in the previous corresponding quarter.

For the cumulative nine-month period (9MFY16), SapuraKencana posted a 61.95% year-on-year decrease in net profit to RM494.63 million or 8.28 sen per share from RM1.3 billion or 21.76 sen per share, due to RM857.2 million impairment provision.

Its revenue for the period came in 5.3% higher at RM7.95 billion from RM7.55 billion in 9MFY15.

Going forward, SapuraKencana expects the O&G industry to continue to face challenges over the medium term due to the weak oil price and the resultant reduced capital spending by producers.

Hence, the group said its focus remains on strengthening positions in key markets, optimising costs and enhancing operational efficiency.

"The group continues to take proactive measures to prepare for long-term resilience," it added.

SapuraKencana is confident that it has the fundamentals necessary to navigate through this period.

Shares in SapuraKencana gained one sen or 0.59% to trade at RM1.70 as at the 12.30pm midday break today, giving it a market capitalisation of RM10.31 billion.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

 

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