SapuraKencana in Profit Slump

Malaysia’s SapuraKencana Petroleum has seen its profits slashed almost 77% in the second quarter ended July 31, 2015, on high impairments, despite a 4% revenue growth.

The company generated revenue of approximately $651.5 million, or 2.8 billion ringgit, up from $627 million, or 2.69 billion ringgit from the year-ago quarter.

Net profit for the quarter was at 104 million ringgit or $24.2 million, a drop from 446 million ringgit or $103.8 million in the prior-year quarter.

The drop in profit was primarily attributable to provision for impairment on oil and gas properties in the current quarter of about $125.6 million (540 million ringgit). Nevertheless, excluding the impairments, SapuraKencana’s profit before tax was some 14% higher compared to the corresponding quarter of the preceding year .

For the first six months, revenue was slightly down, however the impairments, booked in the second quarter, have cut the cumulative profit by some 62% from 956 million ringgit ($222.4 million) down to 365 million ringgit ($85 million).

“The global oil and gas industry continues to face low crude oil prices. The resultant reduction in and postponement of offshore development projects is expected. The Board anticipates the challenging environment to persist over the medium term,” the company said in its Q1 report.

The company has not provided any revenue or profit estimate, forecast, projection or internal targets.

Subsea World News Staff

 

Share this article

Follow Subsea World News

Events>

<< Apr 2020 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3

9th Annual Submarine Power Cable and Interconnection Forum

This year’s Advance Submarine Power Cable and Interconnection conference will focus on the cutting edge thinking that is emerging across…

read more >

The 24th Annual PNEC Conference & Exhibition

The 24th annual PNEC Conference and Exhibition  will bring together the industry thought leaders and technology providers that enable the management…

read more >

OWI APAC 2020

Over the two-day conference, 30 expert speakers will share exclusive insight to help drive well work efficiencies through innovative…

read more >

M&CCE Expo Marine & Coastal Civil Engineering 2020

This conferences, events, demos, and competitions provide a productive background buzz throughout M&CCE…

read more >