KUALA LUMPUR: KENCANA PETROLEUM BHD [] posted net profit of RM52.35 million in the first quarter ended Oct 31, 2010, up 70% from RM30.82 million a year ago and was upbeat for the current financial year on rising demand for its engineering and fabrication of oil and gas production facilities.

It said on Monday, Dec 13 revenue rose 20% to RM336.96  million from RM281 million a year ago while pretax profit increased by 63% to RM68.10 million from RM41.80 million. Earnings per share were 3.16 sen compared with 3.41 sen.

"This is mainly due to progress achieved for contracts in hand and better management of relevant costs as well as maiden contribution from drilling services," it said.

The profit increased by 33% to RM68.1 million when compared with the immediate preceding quarter of RM51.2 million ended July 31, 2010. "The increase in profit before tax for the current quarter was mainly due to better management of relevant costs," it said.

Kenanca said its board believed capital spending in the upstream oil and gas (O&G) sector was expected to remain relatively strong, underpinned by continued active exploration and production activities by the O&G  companies.