Saturday July 16, 2011

Background facts

SapuraCrest

SAPURACREST Petroleum Bhd joined the stable of companies under the Sapura Group in 2003, when Sapura Telecommunications Bhd bought Crest Petroleum from Renong Bhd/United Engineers Malaysia Bhd (UEM) group.

The Sapura Group was established in 1975, growing from a telecommunications infrastructure and service provider, to operating in several areas which include oil and gas, secured technologies, industrial and automotive manufacturing and knowledge and education. Sapura Group was founded by Tan Sri Shamsuddin Abdul Kadir, after he bought Uniphone Work, a company that operated payphones in the Klang Valley and making it a success. Shamsuddin, who is regarded as a close associate of former Prime Minister Tun Dr Mahathir Mohamad, eventually passed his reign over to his son Datuk Shahril Shamsuddin (pic), who has been with the Sapura Group since 1985. Shahril took over as the group president and chief in 1997 and steered the group during its restructuring of the businesses portfolio and its financials, where he made several key decisions that involved the acquisition of companies and technologies.

SapuraCrest Petroleum is involved in drilling, installation of pipelines and facilities, marine services, operations and maintenance as well as development and operation of oil and gas fields.

For the financial year ended Jan 31, the company registered a net profit of RM231mil, up 34% from its previous financial year while revenue stood at RM3.2bil. Operationally, the group's order book stood at RM8.5bil.

One of the key milestones achieved by SapuraCrest this year was the risk service contract award of the Berantai marginal oil field development by national oil company Petroliam Nasional Bhd (Petronas) to a consortium comprising three players Sapura, Kencana Petroleum Bhd and UK-based Petrofac Ltd. The consortium is expected to fork out some US$800mil (RM2.45bil) to develop Berantai, located about 150km off Terengganu on the East Coast of Peninsular Malaysia.

Kencana Petroleum

KENCANA Petroleum Bhd was listed on the Main Market of Bursa Malaysis in 2006, with the company's key core business in engineering and fabrication services as well as marine engineering and operations services businesses.

Through its marine engineering capability, the company is involved in building, refurbishing, repairing and converting marine vessels. Headed by the second son of former Prime Minister Tun Dr Mahathir Mohamad, Datuk Mokhzani Mahathir (pic left) is well-versed with the oil and gas sector as he is a petroleum engineer by profession. He began his career as a wellsite operations engineer with Sarawak Shell in 1987. Prior to joining Kencana Petroleum, Mokhzani served as Tongkah Holdings Bhd group managing director and also chairman and group CEO of Pantai Holdings Bhd but he was forced to relinquish his investments in these companies when Pantai and Tongkah buckled under severe pressure following the Asian Financial Crisis in 1998 on huge borrowings.

However, Mokhzani has been successful in building Kencana to its present strength, with the company having a workforce of 5,000 employees and an international footprint encompassing the Asia-Pacific region, Africa and the Middle East.

For its financial year ended July 31, 2010 (FY10), the company recorded RM136.2mil in net profit, up 15.2% over the previous year's RM118.2mil due to better cost efficiencies in its fabrication activities and expansion into the hook up and commissioning business. Revenue, however, declined by 4.4% to RM1.09bil from RM1.14bil previously as a result of a tougher operating environment and the “wait and see” approach taken by the oil and gas major.

The company paid some RM8.33mil as dividend payment for FY10.

Based on the company's 2010 annual report, the group had an outstanding order book of RM1.9bil comprising RM1.2bil worth of fabrication, construction and hook-up and commissioning jobs and US$235mil from the KM-1 drilling service contract.

SAPCRES : [Stock Watch] [News]
KENCANA : [Stock Watch] [News]

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Saturday July 16, 2011

Background facts