KUALA LUMPUR: Oil and gas heavyweight SapuraKencana Petroleum posted net losses of RM1.28bil in the latest fourth quarter ended Jan 31, 2016, pushing FY16 into the red on impairments
It reported on Friday that the net losses were in stark contrast with earnings of RM129.13mil a year ago. Loss per share was 21.54 sen compared with earnings per share of 2.16 sen.
SK Petro said its revenue fell 6.8% to RM2.23bil from RM2.39bil a year ago.
For FY16, it said profit before tax (excluding provisions for impairment and other items) was RM 1.4bil with margins of 14%.
â€œProvisions of impairment for property, plant and equipment, and oil and gas properties amounted to RM1.7bil, resulting in a loss after tax of RM791mil,â€ it said, which was in contrast with earnings of RM1.43bil in FY15.
Revenue was higher at RM10.18bil compared with RM9.94bil.
SK Petro said its services divisions (drilling and engineering & construction) reported operating profits of RM1.159bil. However, the energy division reported an operating loss of RM1.454bil mainly due to the weak oil price environment and the resulting provisions for impairment made.
It also said cash and bank balances were RM1.9bil while its current orderbook was RM21.3bil.
SK Petro said it had new orders totalling RM4.5bil, with strong operational performance across all business segments.
Its president and group CEO Tan Sri Shahril Shamsuddin said the group would continue to manage the current industry pressures by â€œaggressive implementation of our initiatives to reset costs to match the low oil price environmentâ€.
He said this involved strategic initiatives in the optimisation of its supply chain and improvements to its operational and organisational efficiency.
â€œThe 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.
â€œWe 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 US$30 oil price environment with the embedded agility to benefit as the industry recovers,â€ said Shahril.