SapuraKencana Posts 2Q FY15 Net Profit of $140M, Up 8.6% YOY

Malaysia-based SapuraKencana Petroleum Berhad posted a net profit of $139.99 million (MYR 446 million) for the second quarter (2Q FY15) ending July 31, up 8.6 percent from $127.04 million (MYR 411 million) in the corresponding period last year, the company said when it released its financial results Thursday.

Revenue reached $845.90 million (MYR 2.695 billion) in 2Q FY15, a rise of 8.2 percent year on year, while first half 2015 turnover increased 24.9 percent to $1.61 billion (MYR 5.138 billion), compared with $1.27 billion (MYR 4.113 billion).

The Drilling division remains a major contributor to the company's profits and cash flows amid high utilization rates of its tender and semi tender rigs backed by long-term contracts, while the Offshore Construction and Subsea Services (OCSS) division clocked a key milestone in SapuraKencana's global operations by commencing in Brazil ahead of schedule. The first of the firm's six pipelay support vessels (PLSV) commenced operations for Petrobras in June.

The OCSS and Fabrication and Hook-Up & Commissioning divisions recently secured various major engineering, procurement, construction installation and commissioning/engineering, procurement, construction and commissioning contracts within the region worth around $461.7 million (MYR 1.5 billion). The contracts involve the fabrication and installation of topsides and jackets amounting to 19,300 metric tons.

Meanwhile, the Energy Services division made major gas discoveries within the SK408 exploration block where all five exploration wells have commercial volumes in place. This exceptional rate of discoveries has augmented the firm's discovered resources in place since the completion of the Newfield acquisition in February. SapuraKencana Energy will drill another five wells in SK408 on the same play and is optimistic that further significant discoveries will be made in this prolific gas block.

“I am very pleased to announce that we have achieved a record profit before tax of $376.66 million (MYR 1.2 billion) for the first half of this financial year. Our solid performance in the first six months demonstrates the continued success of our business ... The Group maintains a healthy order book which stands at $8.47 billion (MYR 27 billion) and is optimistic of our ability to capture further growth opportunities in key growth regions. The producing upstream assets will continue to positively contribute to the Group’s results," Shahril Shamsuddin, president and Group CEO said in the press release.


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