- SapuraKencana Petroleum reported a 21.7 percent rise in net profit for 3Q17 from RM129.9 million to RM58.1 million, while its revenue dropped 23.1 percent from RM2.9 billion to RM2.2 billion. This was mainly due to the energy segment which saw an operating profit against a loss year-on-year.
- The group’s 9M17 net profit dropped 23 percent from RM494.6 million to RM380.6 million on lower revenue from RM8 billion to RM5.8 billion, with lower contributions from the engineering and construction and drilling segments.
- AmInvestment Research has upgraded its recommendation on SapuraKencana Petroleum from ‘Hold’ to ‘Buy’ with a target price of RM1.80, expecting better FY17 earnings results.
Significance: The group noted that the industry conditions remained uncertain with prolonged low levels of capital spending. To stay competitive, it will continue to focus on strengthening its position in existing markets and expanding into new markets, while managing costs and improving operational efficiency.