KUCHING: Petra Energy Bhd has delivered remarkable earnings in the first nine months of 2023 (9M2023), with group net profit surging to RM26.8 million from RM5.1 million in 9M2022 as revenue shot up to RM415.3 million from RM260.3 million.
The earnings growth was contributed by both the services segment and marine asset segment.
Petra Energy’s integrated brownfield and offshore marine services is involved in hook-up and commissioning, maintenance construction and modification; project management, procurement and logistics, engineering, operations and maintenance, oil field optimisation as well as equipment, packaging and manufacturing.
Under the marine assets segment, the group owns and operates three accommodation and work barges, four workboats, one anchor handling tug supply (AHTS) vessel and one mobile offshore production unit to support its operation.
In 9M2023, the services segment saw its revenue jumped to RM274.6 million (9M2022: RM187.4 million) as a result of higher activities in existing services contract. The higher turnover drove the segment’s pre-tax profit to RM15.7 million (RM12.2 million).
The marine assets segment recorded a strong growth in its revenue to RM264.9 million (RM155.6 million), thanks to higher vessel utilisation. This pushed the segment’s pre-tax profit to RM30.6 million (RM0.9 million).
For the production and development segment, Petra Energy said its associate has ceased operations and is under the member’s voluntary liquidation, which is in progress. The segment’s total assets of RM38.4 million is mainly related to exploration and evaluation assets in Block SK422, onshore Sarawak, the company said in its financials.
In 3Q2023, Petra Energy reported lower group net profit of RM16.5 million (3Q2022: RM24.2 million) despite revenue expansion to RM149.1 million (RM133.5 million).
Earnings per share declined to 5.14 sen from 7.57 sen. The company has declared an interim dividend of 3 sen (2 sen).
In the current quarter under review, the services segment generated lower revenue of RM79 million (3Q2022: RM90.1 million) and posted lower pre-tax profit of RM9 million (RM12.4 million). The marine assets segment saw its revenue leapt to RM70 million (RM43.4 million) and pre-tax profit rose to RM18.9 million (RM13.9 million).
The 3Q2023 financial results were weaker as compared to the immediate preceding period (2Q2023) as revenue fell RM35.7 million to RM149.1 million (2Q2023: RM184.8 million).
“This is mainly due to lower activities executed in the existing contracts during the quarter,” said Petra Energy.
But pre-tax profit in 3Q2023 jumped to RM25.6 million (RM19.3 million) due to product mix margin between the quarters.
Commenting on prospects, Petra Energy said: “After several years of low activities, the (oil & gas) industry appears to be recovering due to higher oil and spot liquefied natural gas (LNG) prices as demand outstrips supply.
“However, the group remains guarded against over-optimism and will continue to pursue other opportunities within the industry. Cost management and improving its execution efficiencies remain a priority.”
