Elnusa 2013 net profit jumps by 86%
Tuesday, March 11 2014 - 01:07 AM WIB
IDX-listed oil service provider PT Elnusa Tbk saw its 2013 net profit jumped by 86 percent to Rp 238 billion compared to the previous year level despite weaker revenue.
The company said in a statement obtained late Monday that the realized net profit was also higher than the initial target of Rp 138 billion.
It added that the achievement was the result of the company?s strategy focusing on core businesses that provided higher margins.
Elnusa said that drilling and oilfield services (DOS) business grew by 33 percent last year. The DOS business is expected to grow by 100 percent again over the next three years after similar growth rate during the past three. DOS business margins increased significantly from 12 percent in 2012 to 18 percent last year.
The company said that it has also reduced the role of the weak-margin businesses in the downstream sector, and divested ownership in subsidiaries or assets which did not provide value added, to allow the company to focus on its best-performing businesses.
Elnusa said that revenue last year fell by 14 percent to Rp 4.1 trillion particularly due to ?few obstacles? at its seismic business, and the reduction of revenue portion from low-margin downstream businesses.
However, the company added, effective project management has allowed it to cut down the percentage of cost of revenue from 88 percent to 84 percent, said Nurkholis, Vice President of Corporate Finance at Elnusa.
Elsewhere, the company said that gross profit margin rose to 16 percent from 12 percent, while net profit margin increased to 6 percent from 3 percent.
Nurkholis said that the holds total cash and cash equivalents of Rp 1.3 trillion, and cash flows from operation at Rp 753 billion. The company?s solid finances is also reflected from the fact that it has managed to repay bank loans worth US$36 million during 2013, cutting that outstanding loan to $62 million from $98 million.
He said that this also means that Elnusa?s working capital is now financed entirely by internal funds, putting the company in a ?technically debt free? position.
Editing by Reiner Simanjuntak