Kencana 3Q net profit jumps 81% to RM56.42m

by **hlk** Sat 25 Jun 2011, 08:53

KUALA LUMPUR: KENCANA PETROLEUM BHD []’s earnings rose 81% to RM56.42 million in the third quarter ended April 30, 2011 from RM31.17 million a year ago underpinned by the progress achieved for the oil and gas contracts.

It said on Friday, June 24 that revenue rose 34.7% to RM377.83 million from RM280.37 million. Earnings per share were 3.08 sen versus 1.92 sen a year ago.

“Compared to the corresponding quarter ended April 30, 2010 of RM280.37 million and RM36.5 million, revenue and profit before tax had increased by approximately 35% and 91% respectively in the current quarter.

“This is mainly due to higher progress achieved for contracts in hand on the back of bigger order book and better management of relevant costs as well as contribution from drilling services,” it said.

For the nine-months, earnings increased by 69% to RM159.38 million from RM94.3 million while revenue increased by 31.5% to RM 1.06 billion from RM811.51 million.

Its cash and cash equivalents increased to RM809.50 million as at April 30 from RM222.39 million on July 31, 2010.

Kencana was upbeat about its prospects following the Malaysian government’s strategy to intensify exploration activities in Malaysia to increase the oil and gas production as set out in the Economic Transformation Programme.