KUALA LUMPUR (Dec 8): SapuraKencana Petroleum Bhd's third quarter net profit rose 22% to RM158.06 million from a year earlier, in the absence of asset impairment provision. The oil and gas support-services provider said revenue fell. 

In a statement to Bursa Malaysia today, SapuraKencana said net profit rose to RM158.06 million in the third quarter ended Oct 31, 2016 (3QFY17), from RM129.86 in 3QFY16. Revenue fell to RM2.22 billion, from RM2.89 billion. 

"The group recorded profit before taxation of RM199.3 million, which was slightly higher than RM198.0 million in Q3FY2016. Included in Q3FY2016 profit before taxation was a provision for impairment on property, plant and equipment and oil and gas properties of RM317.3 million, a provision for impairment on investment of RM28.3 million and changes in provision of RM80.9 million," SapuraKencana said.

Cumlative 9MFY17 net profit fell to RM380.64 million, from RM494.63 million a year earlier. Revenue was lower at RM5.84 billion, versus RM7.95 billion. 

Looking ahead, SapuraKencana said it expected a challenging oil and gas sector on prolonged low levels of capital spending, amid still-low crude oil prices at about US$50 (about RM221) a barrel.

"To enhance its competitiveness in replenishing the order book, the group remains focused on strengthening its position in existing markets and expanding into new markets, re-basing costs and improving operational efficiency.

"The board anticipates the challenging environment to persist; however barring any unforeseen circumstances, the board is confident that the group will be able to achieve positive results for the financial year," SapuraKencana said.

At 12:30pm today, SapuraKencana shares rose two sen or 1.35% to settle at RM1.50, for a market value of RM8.99 billion. The stock saw some three million shares traded.