Kencana 2011 vis - SapuraKencana Petroleum

Chairman’s Statement (continued)
capitalisation totalled more than
RM5.86 billion (FY2010: RM3.15
billion). As at 31 July 2011, cash
reserves remained healthy with the
Group maintaining a low gearing of
0.5 times. We also increased our
share capital during the year following
the placement of approximately
10% of the Company’s shares.
Overall, the increase in revenue
from operations together with
increased cash reserves and
shareholder funds mean that we are
now in a better position to grow as
a result of a stronger balance sheet
and cash reserves.
On 18 February 2011, Kencana
Petroleum paid out a first and final
single tier dividend of 5% per ordinary
share of 10 sen each amounting to
RM8.33 million in respect of the
financial year ended 31 July 2010.
For the financial year ended 31 July
2011, the Board does not recommend
any dividend pursuant to the terms
20 Kencana Petroleum
Today, our workforce
interacts and operates
very efficiently as one
team, while our different
business segments are
leveraging on a common
pool of experience and
expertise to stay ahead
of the competition.
of the proposed merger offer between
the Company and SapuraCrest
Petroleum Berhad (SapuraCrest
Petroleum). The offer was accepted
by the Board on 5 August 2011
and shall be subject to approval
by our shareholders and other
relevant parties.
KEY DEVELOPMENTS
In FY2011, we built upon existing
activities and undertook new
developments to strengthen the
Group’s integrated services offering
and make further advances up the
oil and gas services value chain.
Consolidation Continues to
Bear Fruit
As of September 2010, all the
subsidiaries within the Group were
housed under one roof at the
Group’s headquarters at Menara
Kencana Petroleum in Solaris
Dutamas, Kuala Lumpur. Today,
our workforce interacts and operates
very efficiently as one team, while
our different business segments
are leveraging on a common pool
of experience and expertise to
stay ahead of the competition.
The rollout of a centralised tender,
procurement and engineering system
for the whole Group too has led to
greater cost efficiencies.
Acquisitions Strengthen Group’s
Integrated Capability
A significant highlight in FY2011
was the completion of the acquisition
of AME for RM400 million. This marked
an important step towards helping
us establish a strong foothold in
the subsea services segment. It has
also widened our service offerings
and strengthened our position as an
integrated services provider for
upstream oil and gas offshore