SapuraKencana Q1 net profit falls 58%

PETALING JAYA: SapuraKencana Petroleum Bhd, which bagged eight contracts worth US$125 million (RM513 million), saw its net profit fall 57.7% to RM110.31 million in the first quarter ended April 30, 2016 from RM260.69 million a year ago, primarily due to lower profit from its engineering & construction and energy business segments.
Engineering and construction saw a 58.1% drop in profit before taxation to RM187.4 million in Q1 FY2016, in line with lower revenue and its corresponding scope of works.
Lower profits for the quarter, was on 14% lower revenue of RM1.94 billion from RM2.26 billion in the previous corresponding quarter, mainly due to lower revenue from drilling and energy business segments.
SapuraKencana said the oil price outlook is still uncertain and capital spending in the oil and gas industry remains slow in the short term.
The group said it continues to focus on growing and replenishing the order book in key markets, re-basing its costs and increasing operational efficiency.