Malaysia’s SapuraKencana Petroleum has posted a rise in net profit for the third quarter ended October 31, 2016.
Profit after tax was RM 157 million ($35.4 million), up from RM 129 million ($29.1 million) in the corresponding quarter of 2015.
The company CEO Shahril Shamsuddin said third quarter was positive as the company was able to secure work through existing client relationships.
He said notable contract wins in the quarter included the contract extension for the SKD Pelaut working for Brunei Shell Petroleum and ONGC’s B-127 Cluster pipelines in India. Contract wins in the quarter across all business segments amounted to RM 1.2 billion (around $270 million).
The company’s revenue in the quarter fell some 23 percent to RM 2.2 billion ($496 million), down from approximately RM 2.9 billion ($654 million) a year ago.
The CEO said: “While the industry outlook remains uncertain in the short term, there are now early indications that oil price is heading towards a path of relative stability in the medium term. In the short term, competition for work will remain intense and margin pressures will likely to continue through into the next year.
“We continue efforts to further enhance our competitiveness in the market, and remain committed to our initiatives towards increasing productivity and efficiency. The measures we take now are to maintain our agility in this challenging environment and ensure long-term sustainability for the Group.”
Offshore Energy Today Staff