Indonesia's oil and gas service firm PT Elnusa Tbk's first-quarter net profits rose 47 percent to $4.6 million (IDR 53.59 billion) from the previous year's IDR 36.46 billion as the subsidiary of the country's national oil company PT Pertamina focused on more cost-efficient projects, local daily Jakarta Post reported Thursday.
The company posted a revenue of $78.82 million (IDR 918.3 billion) in 1Q 2014, down about 12 percent from last year's IDR 1.05 trillion.
“We are no longer revenue-hungry; we are now becoming hungrier for profits by selecting only quality, cost-efficient projects with higher profit margins, even though that means there is an amount of revenue we have to sacrifice,” Elnusa corporate secretary Fajriyah Usman told Jakarta Post Wednesday.
“We have also become more selective in choosing our clients, so that we focus our partnerships only on big companies, to reduce the possibility of project delays that can lead to more costs.”
Meanwhile, Elnusa remains focused on drilling and oil field services as well as potential seismic projects, while reducing its participation in downstream services which generated low margins. The firm was working on a $42 million investment to acquire core business equipment to help boost the company's revenue.
In early April, Elnusa signed a $11.2 million term loan from the Bank of Tokyo-Mitsubishi UFJ Ltd. to finance two projects.
The first is for the construction of an accommodation work barge, Elnusa Samudra 8, for around $8 million, which will take one year to build. The second project, costing around $3 million, is to acquire a coiled tubing unit by the middle of this year.
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