Thursday 28 Mar 2024
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KUALA LUMPUR (Sept 28): SapuraKencana Petroleum Bhd's second quarter net profit grew 8% to RM112.27 million from a year earlier in the absence of oil and gas (O&G) property impairment provision and as operating income rose.

SapuraKencana told Bursa Malaysia today that the RM112.27 million net profit in the second quarter ended July 31, 2016 (2QFY17) grew from RM104.09 million. Revenue, however, declined to RM1.68 billion from RM2.8 billion.

SapuraKencana's income statement showed that operating profit rose to RM1.13 billion from RM950.5 million.

A year earlier, SapuraKencana registered O&G property impairment provision of RM539.85 million for its exploration and production business under the company's energy division.

Today, SapuraKencana said: "The group recorded profit before taxation of RM186.7 million, which was RM125.5 million higher than RM61.1 million in 2QFY16 due to the higher profit before taxation from energy business segment."

"Included in 2QFY16 profit before taxation was provision for impairment on O&G properties of RM539.9 million," the company said.

For 1HFY17, SapuraKencana's net profit dropped to RM222.58 million from RM364.78 million a year earlier. Revenue decreased to RM3.62 billion from RM5.06 billion.

Looking ahead, SapuraKencan said it anticipated a challenging backdrop as cheaper crude oil led to low capital spending in the O&G sector.

But the company remains optimistic despite stiff competition.

"The group's strategic focus remains on strengthening positions in existing markets and expanding into new markets, re-basing costs and enhancing operational efficiency.

"The board anticipates the challenging environment to persist, however, the board is confident that the group will be able to navigate the year satisfactorily," SapuraKencana said.

At Bursa Malaysia today, SapuraKencana shares fell one sen or 0.7% at 12:30pm to RM1.51 for a market value of RM9.05 billion. The stock saw 1.7 million shares traded.

 

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