Kencana Q2 pre-tax profit jumps to RM108.3m

Kencana Petroleum Bhd's pre-tax profit for the second quarter ended Jan 31, 2012 jumped to RM108.34 million from RM61.99 million in the same period last year.

Revenue for the quarter increased to RM545.79 million from RM352.5 million previously, the company said in a filing to Bursa Malaysia today.

For the six months period, pre-tax profit soared to RM216.85 million from RM130.08 million in the same period a year ago.

Revenue surged to RM1.12 billion from RM689.45 million previously.

Kencana Petroleum said the increase in revenue was attributed mainly by EPCIC, marine engineering, design engineering and project management segments which secured more new projects, notably fabrication of substructures, fabrication of well head platform, fabrication of gas compression module and fabrication and assembly of structures and components.

"The pre-tax profit increased was due to higher progress achieved for contracts-in-hand on the back of bigger order book and better management of relevant cost," it said.

On prospects, Kencana Petroleum expected demand for its core business of engineeering and fabrication of oil and gas production facilities and other oilfield services to remain encouraging.

The company is also looking to expand its fabrication business in the region. -- Bernama