Malaysia's SapuraKencana Posts Profit Jump Due to Acquisitions

Reuters

KUALA LUMPUR, June 19 (Reuters) – Malaysian oil and gas services firm SapuraKencana Petroleum Bhd said net profit quintupled in the first quarter, driven mainly by contributions from its newly acquired tender rig business from Norway's Seadrill and assets from U.S. firm Newfield Exploration.

Net profit rose to 509.42 million ringgit ($158.35 million) in the three months to April 30 from 93.67 million ringgit in the same period a year earlier, according to a stock exchange filing late on Thursday.

SapuraKencana, which completed the $2.9 billion purchase from Seadrill in April 2013, said it expected earnings to rise for the full year on the back of full contributions from the tender rig business.

It added that additional contributions would also come from the Malaysian oil and gas fields it took over from Newfield, an acquisition that it completed on Feb. 11 this year.

The company said it had a healthy order book of 27 billion ringgit.

SapuraKencana also said in a separate filing, also after the market closed, that it had won $415 million in engineering, procurement, construction, installation and commissioning contracts in Malaysia and Thailand.

SapuraKencana's wholly owned unit in Malaysia secured the two contracts from Hess Exploration and Production Malaysia B.V. and Carigali-PTTEPI Operating Company Sdn Bhd.

SapuraKencana said the contracts were expected to add to its earnings between the second quarter of this year and September 2017.

Its shares rose 1.17 percent to 4.33 ringgit per share before the close, outperforming the broader index's 0.26 percent rise.

($1 = 3.2170 Malaysian Ringgit)

(Reporting by Yantoultra Ngui; editing by Jane Baird)

 

Copyright 2017 Thomson Reuters. Click for Restrictions.

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