KENCANA Petroleum Bhd has posted a higher pre-tax of RM171.3 million for its financial year ended July 31, 2010, compared to RM152.8 million in the previous year.

Revenue, however, declined to RM1.089 billion from RM1.141 billion previously, the company said in a statement today.

For its fourth quarter, Kencana Petroleum's pre-tax profit rose to RM51.2 million from RM38.9 million in same quarter last year.

Revenue increased to RM278.2 million from RM258.1 million previously, mainly due to lower expenses incurred and better management of relevant costs, particularly from the offshore services segment.

Going forward, Kencana Petroleum expects demand for its core business of engineering and fabrication of oil and gas production facilities and other oilfield services to remain encouraging.

In addition, the company's extension in offshore services is expected to expand its earnings base and profit margin.

'Barring unforeseen circumstances, the company is reasonably confident that the prospect of the company remains positive,' it said. - BERNAMA