| THE company registered a near
42% increase in net profit to RM11.2mil for the second to end June
2007 on the back of a 55% growth in revenue. For the first half of
the year, SapuraCrest's net profit swelled to RM21.7mil, an increase
of 58% from the last corresponding period.
Comment by ECM Libra Avenue Securities: Even though first half-year
earnings only accounted for 17% of our full year estimate, we feel
the best is yet best to come and so we are not unduly concerned.
Recall that most of the contracts were secured quite recently and
so the full impact has yet to be realised.
Maiden contribution from Sapura 3000 has also yet to be felt as
the HPV was only delivered in August 2007. After a turnaround in
the installation of pipelines and facilities (IPF) division in FY08,
we anticipate a significant jump in revenue as more jobs flow in
from FY08/FY09 onwards.
SapuraCrest's order book still remains at RM5.3bil while tender
in hand is to the tune of RM6bil.
Overall revenue and earnings showed significant growth quarter
on quarter. Revenue from the IPF, drilling, marine services and
O&M grew 123%, 108%, 133% and 140% quarter-on-quarter to RM423mil,
RM320mil, RM273mil and RM20.9mil, respectively. This shows a significant
turnaround. Its tie-up with international players such as Seadrill,
whose expertise is in drilling with assets in semi-submersible rigs
and jackup rigs, has also borne fruit.Total order book still stands
at RM5.3bil following the awards of a few major jobs including IPF
(RM3bil). Last July alone, the group clinched approximately RM3.8bil
worth of jobs in IPF works. IPF accounts for 74% of total order
book, followed by drilling (19%), marine (6%) and operations and
maintenance (O&M) (1%).
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