SapuraKencana eyes more marts, takeovers
(From left) SapuraKencana Petroleum president and group chief executive officer chairman KUALA LUMPUR: SapuraKencana Petroleum Bhd is looking to squeeze more value from the slumping oil and gas (O&G) industry with deeper market penetration and more business acquisitions.
The move is in contrast with the path taken by other local O&G players that plan to diversify business activities to reduce reliance on O&G revenue.
President and group chief executive officer Tan Sri Shahril Shamsuddin said although there are only a few projects out there, the company aims to realise at least RM5 billion worth of order book each financial year with current bids and prospects at US$7 billion (RM28.5 billion).
SapuraKencana, with a current order book of RM19.8 billion, is expected to make a few more announcements
at the company’s Pic by Rosela Ismail on contract wins in the near future.
Its operations in South America are the largest in terms of order book which stood at RM11.5 billion, followed by Southeast Asia at RM7.2 billion.
“The reason why we want to do this (market penetration and business acquisitions) is because we want to focus on building the topline,” he said after the company’s annual general meeting, here, yesterday.
“In order to go back to the level of revenue we had before, we need to go around the globe and pick up many small jobs,” he added.
Shahril said while the company aims to grow its business, it is also focusing on increasing operational efficiency and optimisation to ensure resilience during volatile periods.
“Today, we have saved RM500 million in cost operations and are targeting to squeeze another RM250 million by year end,” he said.