Petra Energy 4Q net profit up 3% on better cost-efficiency

This article first appeared in The Edge Financial Daily, on February 18, 2020.
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KUALA LUMPUR: Petra Energy Bhd’s net profit grew 3.42% to RM21.68 million for the fourth quarter ended Dec 31, 2019 (4QFY19) from RM20.96 million a year ago, helped by lower finance costs, administrative expenses and impairment on trade and other receivables.

Its earnings per share for the quarter increased to 6.75 sen from 6.51 sen.

Petra Energy’s net profit improved despite a 35.17% dip in revenue to RM124.37 million, from RM191.83 million for the year-ago.

The oilfield services provider announced an interim dividend of two sen per share, payable on May 15, 2020. This marks the total dividend declared to date of six sen with respect to FY19.

For FY19, the company returned to the black with a net profit of RM62.55 million, from a net loss of RM20.92 million a year ago. Its revenue gained 26.84% to RM592.88 million from RM467.42 million for FY18.

According to its annual report 2018, the company has been reporting losses for the past three consecutive years.

In a separate statement, Petra Energy said its FY19 performance reflected the concerted efforts implemented under its Transformation Programme, initiated in 2018, with a key focus on financial prudency, cost management and efficiency on projects executed.

Petra Energy said while the industry seems to have recovered, oil prices are still volatile, which may affect the company’s activities.

Petra Energy’s share price gained four sen or 3.2% to RM1.29 yesterday, with a market capitalisation of RM414.02 million. The stock has gained three times over the past one year from 41 sen.