KUALA LUMPUR: Oil and gas exploration heavyweight SapuraKencana Petroleum Bhd’s earnings fell 62.7% to RM129.85mil in the third quarter ended Oct 31 from RM348.40mil a year ago as it was impacted by the plunge in crude oil prices, forcing it to make allowances for impairments.
It said on Tuesday its revenue rose 19.9% to RM2.89bil from RM2.41bil. Earnings per share were 2.17 sen compared with 5.81 sen.
The higher revenue was mainly due to its engineering and construction division, driven mainly by newly executed international projects in the current quarter and the current financial period, combined with higher scope of works for domestic projects.
During the quarter, it made a provision of impairment on investment of RM28.25mil. It also made a provision of impairment on property, plant and equipment and O&G properties totalling RM317.33mil. This was due to to lower average realised price per barrel achieved, in line with the downward trend for crude oil prices.
However, it managed to record a net foreign exchange gain of RM123.74mil in that quarter.
SapuraKencana said excluding provision for impairment on property, plant and equipment and oil and gas properties of RM317.3mil, provision for impairment on investment of RM28.3mil and changes in provisions of RM80.9mil, profit before taxation was RM462.7mil, which was 12.6% higher than RM411mil a year ago.
In the nine months to Oct 31, 2015, its earnings fell 62% to RM494.63mil from RM1.30bil in the previous corresponding period. Revenue was higher at RM7.95bil from RM7.55bil.
SapuraKencana made a provision of impairment on property, plant and equipment and O&G properties totalling RM857.18mil during the nine months.
