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012
SapuraCrest Petroleum Berhad
Annual Report 2010
CHAIRMAN’S
STATEMENT
‘Building On Values’
Honourable, Professional, Resourceful, Resilient, Agile
Dear Shareholders,
I am pleased to report that SapuraCrest
Petroleum Berhad (SapuraCrest or
the Group) turned in a commendable
performance for the financial year ended 31
January 2010 (FY 2010). The Group posted
a profit after tax and minority interest of
RM172.0 million, which is 48.5% higher
than RM115.8 million recorded for the
previous financial year. On the operational
front, SapuraCrest achieved a record order
book of RM11.0 billion, its highest level to
date.
The Group’s results are all the more
satisfying in the face of a very challenging
operating environment. While oil prices
soared to unprecedented heights in 2008,
it also sank to as low as US$34.0 per barrel
in December that same year. The drastic
price fall had an adverse impact on the
international petroleum industry, especially
in the upstream exploration and production
sector. It is under this unfavourable
conditions that SapuraCrest began
operations in FY2010. However, despite the
challenging environment, SapuraCrest has
delivered in terms of improved margins,
market positioning, regional reach,
strengthening its asset base, and not least of
all, continued to enhance shareholder value.
Through the implementation of a well
planned strategy in moving forward,
SapuraCrest is gaining ground in
establishing itself as a regional integrated
oil and gas services provider. Through
strategic acquisitions of key assets and
technologies, continuous development
of our people and increased focus in
operational efficiency, we have further
strengthened the Group’s competitive edge
and market position. With the momentum
already established, we continue to make
progress in growing our international
business. To this end, we are strengthening
the organisation and changing our
operational structure to enable us to
establish a firmer foothold in regional and
global markets.
There are many contributing factors to
the Group’s success, but I would like to
single out the defining role played by our
management and staff. As a cohesive team,
our people are a formidable force and
personify the core values that differentiate
SapuraCrest from its industry peers. These
core values – Honourable, Professional,
Resourceful, Resilient, Agile – are embedded
in every employee of the Group and
manifested in all aspects of the way we
conduct our business. In moving forward,
we will continue to build on our core values
as we strive towards giving more value to
our stakeholders.
On behalf of the Board of Directors, it is my
pleasure to present this Annual Report and
the Financial Statements of the Group for
the financial year ended 31 January 2010.
FINANCIAL PERFORMANCE
The operating environment in the year
under review was characterised by extreme
volatility in oil prices. In an industry that
involves long lead times and high capital
costs, such price volatility undermines the
ability of the oil and gas industry and its
investors to adjust to market conditions and
make investment decisions. However, with
signs of the global economy rebounding
from the worst recession since World
War II, oil prices surged by 85.0% during
2009 before settling at around US$70.0 to
US$80.0 per barrel by financial year-end.
The improved situation has encouraged
major oil and gas companies to plan a
higher level of investment in exploration
and production activities.