Malaysia’s SapuraKencana Petroleum has seen its profits slashed almost 63 per cent in the third quarter ended October 31, 2015, mostly on high impairments, despite a revenue growth of close to 20 per cent.
In the third quarter, the company generated revenue of approximately $671.2 million, or 2.89 billion ringgit, up from $559.7 million, or 2.41 billion ringgit from the year-ago quarter. Revenue boost was achieved by higher activity in the E&C division. Quarter-over-quarter revenue was also some 3 per cent higher.
Net profit was at 129.85 million ringgit or $30.2 million, a drop from 348.40 million ringgit or $81 million in the prior-year quarter.
As in the previous quarter, the drop in profit was primarily attributable to provision for impairment on oil and gas properties in the current quarter of about $73.7 million (317.3 million ringgit).
Nevertheless, excluding the impairments, and other expenses, SapuraKencana’s profit before tax was some 12.6 per cent higher compared to the corresponding quarter of the preceding year, but the oil price plunge continues to hit the profit of service providers as operators are looking into ways to further cut costs.
Subsea World News Staff