JAKARTA: Integrated oil services company PT Elnusa has continued to see an increase in its net profits amid stagnant revenues and pressure in the oil and gas business on falling oil prices, thanks to the company’s selective business strategy.
Elnusa, according to its recently published financial statement, saw its bottom line increase by around 20 percent to Rp 65.16 billion (US$5.06 million) in the first three months of the year, compared with the
Rp 54.16 billion it recorded in the same period last year.
In contrast, the company’s first quarter revenue was up only slightly to Rp 924.6 billion, from Rp 918.3 billion.
Sabam Hutajulu, the company’s finance director, told a press conference on Wednesday that the net profit increase was the result of the company’s efficiency policy and selective business strategy focusing more on net profit than revenue.
The company, as previously reported, focuses on contracts that generate higher profit margin, to mitigate plunging oil prices, which have affected the oil and gas-related industry.
With such strategy, Sabam said his company was confident that it would maintain its growth to year-end.
“We are at least optimistic that our company could book another Rp 65 billion in net profit in the second quarter,” he said.
The company deflated its revenue cost from Rp 770.51 billion in the first three months of last year to
Rp 766.99 billion this year.
Elnusa, which is 41.1 percent owned by state-run oil and gas firm Pertamina, also saw its financial costs decrease by around 7 percent to Rp 11.5 billion.
Last year, Elnusa spent up to Rp 438.57 billion on debt repayment, of which Rp 412.68 billion went to syndicated loans, which had helped the company boost its bottom line.
Elnusa corporate secretary Fajriyah Usman, meanwhile, said the company was upbeat that it would be able to retain its first quarter performance until later this year because it had booked around $344 million worth of contracts between January and March.
Out of the total contracts, about $86 million of them were new contracts, while the remainder was carried-over contracts from the previous year.
About 74.4 percent of the total contracts came from the company’s oil field and drilling business unit, while the rest came from its seismic unit.
“Out of the total contracts we have secured so far this year, about 45 percent or around $158 million will be worked and recorded in our revenue this year. “The remaining 55 percent comprise multiyear contracts that will be carried over to 2016 and 2017,” she explained.
Last year, Elnusa, with business coverage reaching Myanmar, Vietnam, Brunei Darussalam and India — booked $470 million in contracts, around $239 million of which were new contracts.
Elnusa saw its bottom line surge by around 73 percent to Rp 412.43 billion last year, a significant jump from Rp 238.06 billion in 2013. The company maintained net profit growth after booking 86 percent annual growth in 2013.
This is in contrast to the company‘s revenue, which only grew 2.7 percent to Rp 4.2 trillion on an annual basis last year and slumped by around 14 percent compared to the previous year.
The company’s 2014 full-year profits were also backed by Rp 87.39 billion sales in fixed assets after selling 20,815 hectares of land worth Rp 93.4 billion in the second quarter of last year.