Malaysian services giant SapuraKencana Petroleum saw its second-quarter net profit climb by 7.9% year on year to 112.2 million ringgit (US$27.2 million).
The company’s stronger earnings, despite a fall in revenue, were driven by a 539.9 million ringgit (US$130.8 million) write-down on oil and gas properties the year before.
Revenue amounted to 1.67 billion ringgit (US$406.8 million) in the May-July period, down 40.2% from 2.8 billion ringgit (US$678 million) a year earlier, the company’s quarterly financial results revealed on September 28.
Its engineering and construction (E&C) business saw revenue shrink 51.4% year on year to 796.7 million ringgit (US$192.9 million) from 1.64 billion ringgit (US$397.1 million) in the same period of 2015. Revenue from the drilling segment came to 537.7 million ringgit (US$130.2 million), down 31.4% from 783.8 million ringgit (US$189.7 million) a year earlier.
Upstream revenue slid 21.5% to 353.3 million ringgit (US$85.5 million) from 449.9 million ringgit (US$108.9 million) a year earlier, with SapuraKencana blaming the fall on lower oil prices in the quarter.
SapuraKencana’s president and CEO, Tan Sri Dato’ Seri Shahril Shamsuddin, said the group had recorded two positive quarters this year and that it had managed to secure 3.3 billion ringgit (US$798.6 million) worth of work so far this year. But, he warned, “the industry outlook remains challenging and the group anticipates stiff competition globally resulting in further pressure on margins.”
He added: “Transformative action is in place to deliver on lower costs and increased productivity, ensuring long-term sustainability of our business.”
Meanwhile, SapuraKencana said on September 30 that it had won three new contracts worth a total of US$215 million.
One of the three new contracts was awarded to a consortium of SapuraKencana TL Offshore and SapuraKencana HL by India’s state-run Oil and Natural Gas Corp. (ONGC) for work at the B127 Cluster Pipeline RTR Project.
SapuraKencana Drilling Asia was awarded a contract by Brunei Shell Petroleum for the provision of its semi-tender assist drilling rig SKD Pelaut.
Petronas Carigali awarded SapuraKencana Subsea Services a contract for the provision of underwater maintenance services for Sepat, a mobile offshore production unit (MOPU).