SAPURAKENCANA Petroleum has recorded net profit after tax of 104 million ringgit in its second quarter profits over the three months to 31 July, down 60.1 per cent on its first quarter results.
Profits reached were down from the 261 million ringgit recorded in the first quarter of 2015-2016 and down 76.7% on the same period in 2014-2015, when the company recorded a profit after tax of 446 million ringgit.
Company president and chief executive Shahril Shamsuddin said the company was encouraged by the strength of its order book – consisting of 23 billion ringgit over the next few years, with 5.8 billion ringgit secured for the 2016-2017 financial year.
“Our strategy to replenish the orderbook remains consistent with a targeted approach on key geographies and customers with contracts that remain commercially viable even in this low oil price environment,” he said.
“We are encouraged by the progress our business has made in new markets and our continued focus to deliver on key projects that have kept our asset utilisation high.”
Group revenue was 2.8 billion for the second quarter, down from the 2.3 billion recorded in the first quarter, while operating profits from the group’s services division were 22.8% higher due to contributions from new markets.
However volatility in the global oil and gas industry led the company to record an impairment of 540 million in its energy division, pushing the division into a loss position of 417 million ringgit.
“We believe our focus on precision in execution and cost optimisation will contribute to our resilience through this downturn and position us well for the future,” Mr Shamsuddin said.