Impairments Sink SapuraKencana

Malaysian oil and gas services provider, SapuraKencana Petroleum, has plunged into loss in the fourth quarter ended January 31 on high impairments related to oil market downturn which also pulled the company down in red for the full year, despite a slight full-year revenue growth.

Net loss for the quarter was at 1.29 billion ringgit or $320.02 million, compared to 129 million ringgit or $32 million profit in the prior-year quarter. For the full 12 months, SapuraKencana booked a loss of 791 million ringgit against a profit of 1.43 billion ringgit in the year before.

The company said that the loss was primarily attributable to provision for impairment on property, plant and equipment and oil and gas properties of some 2 billion ringgit, and deposit on proposed acquisition of oil and gas assets written off amounting to approximately 172 million ringgit. Q4 impairments were around 1.14 billion ringgit.

In the fourth quarter, the company generated revenue of approximately $553 million, or 2.23 billion ringgit, down from $592 million, or 2.39 billion ringgit from the year-ago quarter. Full-year revenue was, however, 2.4 per cent higher at $2.52 billion (10.18 billion ringgit) versus $2.46 billion (9.94 billion ringgit). The revenue improvement was attributed to E&C’s division international projects executed during the year.

“We still anticipate pressures on our margins in the near term but remain confident in our ability to deliver fit-for-purpose solutions for our customers,” said SapuraKencana’s president and CEO Tan Sri Shahril Shamsuddin.

Subsea World News Staff

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