News Column

Petra Energy profit soars to RM11.4m

February 25, 2014

KUALA LUMPUR: Petra Energy Bhd's net profit rose 57 per cent to RM11.4 million in the year ended December 31 last year from RM7.43 million previously.

Group revenue, however, eased to RM492.8 million from RM654.1 million in 2012, Petra Energy said in a statement yesterday.

This was due to lower contribution from the integrated brown field maintenance and engineering services segment resulting from the slowdown in activity from clients pending the award of the new Pan Malaysia HuCC contract in May last year.

The Pan Malaysia HuCC project only saw a pick-up in activity towards the end of last year, the company explained.

Petra Energy continues to implement measures as part of its efforts to manage costs efficiently and improve processes.

However, the timing of implementation, coupled with the reduced baseline work from the tail-end Sarawak/Sabah Shell Topside major maintenance hook-up construction and commissioning services contract, impacted the group's bottom line last year.

Nevertheless, this was cushioned by recognition of negative goodwill and tax credit during the period.

However, activities are notably on the increase as the offshore weather window between March and October approaches, it added.

On another front, the group's venture in development and production activities with Coastal Energy has so far been positive.

The joint venture achieved first oil production from the Kapal field on December 16 last year, marking a significant milestone for the group in moving up the value chain.

The Kapal field is part of the Kapal, Banang and Meranti cluster of small fields offshore Peninsular Malaysia.

Initial production rates from the cluster are over 10,000 barrels of oil per day (bopd), with peak production reaching 13,000 bopd.

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Source: Business Times (Malaysia)

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