Radiant 9M11 net profit up 39% on higher offshore division revenues

Oil and gas service company PT Radiant Utama Interinsco Tbk reported that it booked a net profit of Rp11.8 billion in the first nine months to September (9M11) or increased 39 percent year-on-year (yoy).

The increase was mainly due to higher revenue from operating support division and the gross profit from offshore division as the impact from acquisition of a mobile offshore production unit (MOPU) from Dubai-based firm Global Process System.

The revenue from operating support division increased 24 percent yoy and boosts the total revenue to Rp841 billion or 10.8 percent higher than revenue of last year.

Its gross profit from offshore division increased significantly to Rp 36.1 billion or jumped 117 percent due to impact MOPU acquisition which completed in 1 August 2011.

?However, the company should book even higher (net) profit in this period if the company did not book a foreign exchange loss of Rp 8.5 billion in 9M11,? company President Director Sofwan Farisyi said. The forex loss was mainly due to weak rupiah in the third quarter.

The company raised new loan of US$38 million in 3Q11 to fund MOPU acquisition. The company believes the forex loss will not significantly impact to the cash-flow, as it is only translation loss. Moreover, the MOPU project is naturally hedged as the revenue from MOPU dominated in US dollar. (romel)