SapuraKencana's FY2015 Net Profit Up 32% to $382M, Boosted by Upstream Ops

SapuraKencana Petroleum Berhad, an oil and gas services and solutions provider with upstream petroleum assets offshore Southeast Asia, posted a 32 percent increase in net profit for financial year 2015 (FY2015) that ended Jan. 31 to $381.8 million (MYR 1.4 billion), compared to $300 million (MYR 1.1 billion) in the previous year, according to financial results released by the firm Wednesday.

The company generated an 18 percent increase in revenue in FY2015 to $2.7 billion (MYR 9.9 billion), up from $2.3 billion (MYR 8.4 billion) a year earlier, while profit before tax was one-third higher at $436.3 million (MYR 1.6 billion) compared to $327.2 million (MYR 1.2 billion) in the same period.

The higher revenue last year was due to the "inclusion of SapuraKencana Energy Inc. (SKEI) -- the upstream subsidiary -- business subsequent to completion of its acquisition on Feb. 11, 2014," SapuraKencana said in its press release. The completion of the $895.9 million acquisition of Newfield's upstream assets in Malaysia provided SKEI with a net production of around 23,000 barrels per day, as indicated by the former in 2012.

Overall, the firm's Drilling and Energy Services (DES) segment recorded a 79.8 percent annual increase in revenue to $1.3 billion (MYR 4.9 billion) in FY2015 primarily due to the inclusion of SKEI's business.

Offshore Construction and Subsea Services (OCSS) division comes next at $845.4 million (MYR 3.1 billion), down 18.3 percent from FY2014 due to lower scope of works in line with clients' planned activities.

Higher contribution from on-going projects, combined with recognition of revenue from newly executed engineering, procurement, construction, installation and commissioning projects during the year lifted the Fabrication, Hook-Up and Commissioning (FHUC) segment's revenue by 3.2 percent to $572.7 million (MYR 2.1 billion) in FY2015.

SapuraKencana's drilling division bagged 14 assignments worldwide, comprising of 5 new contracts and 9 contract extensions, in FY2015, adding approximately $1.4 billion (MYR 5.1 billion) to the Group’s order book. The firm has also taken delivery of two new tender barges this year and expanded operations in West Africa as well as completed two contracts in Myanmar.


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