Su­matec’s net profit surges 47% in third quar­ter to RM13.75m

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: Su­matec Re­sources Bhd saw its net profit surge 46.9% to RM13.75 mil­lion in the third quar­ter ended Sept 30, 2016, from RM9.4 mil­lion in the cor­re­spond­ing pe­riod last year.

In a fil­ing with Bursa Malaysia yes­ter­day, the group said the higher profit was due to a re­duc­tion in di­rect cost, cut­backs in op­er­at­ing ex­penses and in­come from fair value ad­just­ment on amount re­ceiv­able from the con­ces­sion holder of the Rakushech­noye oil and gas field.

Rev­enue dropped 37.6% to RM7.6 mil­lion from RM12.2 mil­lion in the pre­vi­ous cor­re­spond­ing quar­ter, due mainly to a slow­down in the gas devel­op­ment con­tract ac­tiv­i­ties, in tan­dem with the cur­rent global down­turn in the in­dus­try.

On prospects, Su­matec said it ex­pects the global eco­nomic out­look to re­main un­cer­tain over the next few quar­ters, with the pos­si­ble im­pact from the out­come of the US pres­i­den­tial elec­tion and the fail­ure of Or­gan­i­sa­tion of the Petroleum Ex­port­ing Coun­tries mem­bers to come to an agree­ment on oil pro­duc­tion cuts.

It added that the low oil price en­vi­ron­ment is ex­pected to per­sist and im­pact the group’s growth tra­jec­tory.

“On a more pos­i­tive note, the group has an­nounced the ac­qui­si­tion of CaspiOilGas LLP, the con­ces­sion owner of the Rakushech­noye oil and gas field in Kaza­khstan. The ex­er­cise will in­crease the group’s share of hy­dro­car­bon re­serves and en­hance the ef­fec­tive­ness and ef­fi­ciency of op­er­a­tions at the field, thereby pro­vid­ing a wider av­enue for fu­ture growth,” it added.

For the nine months pe­riod, Su­matec’s net profit was down 32.4% to RM25.86 mil­lion, from RM38.23 mil­lion a year ago, while rev­enue de­creased 32.2% to RM38.3 mil­lion, from RM56.47 mil­lion pre­vi­ously.

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