Sapura Crest Petroleum >>> Profits Jumps 65.5%

SapCrest has landed another major oil and gas job — its second since November last year (2008) — to provide deepwater installation facilities. It had secured a RM3 billion job for the installation of offshore facilities at the deepwater Gumusut-Kakap oil field, operated by Sabah Shell Petroleum Co Ltd.The latest contract is expected to nudge its order book to about RM8 billion, of which a chunk is for installing pipes and facilities (IPF) in offshore oil development areas.The contract, awarded to SapuraCrest’s wholly owned unit TL Offshore Sdn Bhd (TLO), is for a three-year period and will commence this year (2009).

Sabah Shell Petroleum operates the Gumusut-Kakap field as contractor to state oil major Petroliam Nasional Bhd (Petronas).

SapuraCrest’s substantial shareholders are Sapura Holdings Sdn Bhd, with 40.3% shareholding, and Seadrill Ltd, the vehicle of Norwegian tycoon John Fredriksen, which has accumulated about 24.3% in the company.

Financial Results …
SapuraCrest posted a revenue of RM3.48bil for financial year ended Jan 31, 2009 (FY09) against RM2.26bil in FY08. Its net profit for FY09 was RM115.7mil against RM78.2mil previously.

SapuraCrest posted a profit of RM26.3mil in its fourth quarter, against RM33.2mil before. Its fourth quarter revenue came in at RM849.8mil compared with RM599.1mil a year ago.

Its net cash flow from operations rose to rm566 million.

The project have cost escalation pass on clauses that nearly eliminate execution risks, offering the company as stable and secure earnings flow.

This contracts bodes well for SapCrest as it boosts its order book to RM7.7 billion and strengthens its earnings visibility. Moving forward, the company plans to tap the Indian oil and gas market, which will boost its order book further.

Major Shareholders ......
Sap Technology (38.7%)
Seadrill Ltd Norway(22.7%)


Financial year end net profit 249.917 million (increased 65.48%}