Elnusa maintains margins despite bearish industry

IDX-listed oil and gas services company PT Elnusa Tbk said it has managed to prevent margins from declining during the first six months of this year despite the overall weak oil and gas industry.

The company said in a quarterly report Friday that margins in the first-half of this year was relatively stable compared to the same period of last year, thanks to various efficiency measures and financial management carried out by the company.

?The achievements in the first semester of 2015 shows that amid the pressure on operating revenue, the company continued to carry out proper project and financial management as well as efficiency in all lines so that the overall net profit margins have been maintained compared to margins in the previous period,? said Finance Director Budi Rahardjo in the statement.

Elnusa said that while net profit in the first six months ending June of this year fell to Rp 132.7 billion compared to Rp 178.29 billion in the same period of last year, in ?real? figure it actually increased by 46.2 percent as the net profit in the first-half of last year included proceeds from sales of assets of Rp 87 billion. ?The net profit (in first-half of 2015) is quite an achievement given the current industry (bearish) environment,? Budi said.

?New large seismic survey contracts in Cirebon and Langkat, as well as HWU-Snubbing project in Kalimantan are expected to increase the company?s performance going forward,? he added.

Table: Elnusa?s first-half 2015 financial performance

Financial indicators (million Rp)	1H-2015	1H-2014	Change
Operating revenue	1,803,154	2,012,559	-10.4%
Cost of revenue	1,507,779	1,698,702	-11.2%
Gross profit	295,375	313,857	-5.9%
Operating profit	170,812	190,477	-10.3%
EBITDA	305,205	310,178	-1.6%
Net profit	132,681	178,289*	-25.6%
Cash from operation	162,232	335,743	-51.7%
Cash and cash equivalent at end of period	871,174	1,140,441	-23.6%
% Of cost to revenue	83.6%	84.4%
% Gross profit margin	16.4%	15.6%
% Operating profit margin	9.5%	9.5%
% EBITDA margin	16.9%	15.4%
% Net profit margin	7.4%	8.9%**
* Net profit includes proceeds from sale of assets worth Rp 87 billion, ** This net profit margin also includes profit from sale of assets

Editing by Reiner Simanjuntak