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