Kuala Lumpur, 25 March 2016
SapuraKencana Petroleum Berhad (“SapuraKencana”, “the Company” or “the Group”), announces its full year results for the financial year ended 31 January 2016.
SapuraKencana Petroleum delivered strong full year operational performance resulting in a Profit before tax and impairments of RM 1.4 billion.
• Revenue of RM10.2 billion
• Profit before tax (excluding provisions for impairment and other items) of RM 1.4 billion with margins of 14%
• Provisions of impairment for property, plant and equipment, and oil and gas properties amounted to RM1.7 billion, resulting in a Loss after tax of RM791 million
• Cash and bank balance of RM1.9 billion
• Current orderbook of RM21.3 billion
Major developments for the year
New orders won totaling RM4.5 billion, with strong operational performance across all business segments
Engineering & Construction:
- South East Asia: Key projects completed include the delivery of EVA EPCIC for the Trans-Thailand Malaysia JDA, completion of pipelay for Nam Con Sohn and Thai Binh in Vietnam for PVN, 190km Kepodang pipelay for PT PGAS
- Brazil: Strong operational performance (Sapura Onix and Sapura Jade have commenced operations, bringing total PLSVs to 4 with high utilization rate of >99%)
- Mexico: Execution of ~3200 MT lift and pipelay contract for PEMEX
- India: Initiation of EPCIC ONGC Mumbai High South Redevelopment Phase III and good progress on Vasai East installation work.
- Average uptime of 99% for rigs in operation
- Best rig awards from Shell Global (SKD Pelaut), Chevron Thailand (T-12, T-15, T-18) and Hess Global (SKD Esperanza)
- Produced 4.8 million barrels net
- SK 310 B15 Field Development Plan (FDP) approved by PETRONAS, in line with expectations for first gas by fourth quarter of 2017
- First entity to launch the Islamic Medium Term Notes ("IMTNs") under the Securities Commissions’ new Guidelines on Unlisted Capital Market Products, total YTD issuance of USD 240 million.
- Signed a 6-year USD2.1 billion Murabahah multi-currency term facility to refinance the Group’s existing short term Islamic Facility
Tan Sri Dato’ Seri Shahril Shamsuddin, President and the Group Chief Executive Officer said:
“The Group will continue to manage the current industry pressures through aggressive implementation of our initiatives to reset costs to match the low oil price environment. This involves strategic initiatives in the optimisation of our supply chain and improvements to our operational and organisational efficiency. Our efforts have now been hardwired to ensure long-term competitiveness.
The Group has generated strong operational performance in FY16 across all business segments through our commitment on precision in execution. Looking ahead, 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.
We will navigate this period with an enhanced focus on opportunities in key markets such as in South East Asia, India, the Middle East and Mexico. We will continue to strengthen key capabilities and ensure our cost base is competitive in a $30 oil price environment with the embedded agility to benefit as the industry recovers.”
Full Year Financial Year 2016
Group revenue for the Financial Year 2016 was RM10,184 million, 2% higher than RM9,943 million in the corresponding period of Financial Year 2015. Excluding provisions for impairment on property, plant and equipment and oil and gas properties, provision for impairment on investment, deposit write off on acquisition of oil and gas assets and changes in provisions, together totaling RM 2,121 million, the Group’s profit before tax stood at RM1,408 million.
Our services divisions (Drilling and Engineering & Construction) reported operating profits of RM1,159 million. However the Energy division reported an operating loss of RM1,454 million mainly due to the weak oil price environment and the resulting provisions for impairment made.