In Strategic management, there are few types of strategic can be adapted for companies to overcome their competitors namely

forward integration, backward integration and vertical integration.

Funding
Tan Sri Shahril Shamsuddin claimed:
The proof of funding different than those in services. The strength of the company is that they can develop and execute the field with their assets which allow them to progress faster.

Project won for Funding

Construction and commissioning
RM460 Million and RM474 Million from Murphy Sarawak

24 Jul 2012
awarded RM 8.5 Million contract for Global Process Systems.

2 Nov 2012
won 2 oil and gas services jobs worth RM800 Million from Petronas Carigali. Announced RM135.8 Million job from HESS Exploration.

Jun 28, 2013

Secured US$ 2.7 Billion contract in Brazil

Acquisition
RM2.85 Billion
bid to buy United States-based Newfield Exploration Cos oil and gas assets in Malaysia

US$ 2.9 Billion for Seardrill Tender.

RAM Rating expected additional of RM 6 Billion Debt.

Debt
17 Apr 2013
Debt level of SK Petro
7 6 5 4 3 2 1 0 Jan-12 Jan-13

RM (Billion)

debt 1.4 5.94

Forecasted Cash Flow

Source: the edge malaysia

People
After the merger of Sapura and Kencana, the company has:
9,000 skilled employees from different countries.
Malaysia Thailand Indonesia Brazil

People
Tan Sri Shahril Shamsuddin stated:
. We have a strong team and that is the catalyst of the company . Strong and dynamic organization structure that would ensure the business continuity Nov 24, 2012 Came out a winning management formula with Datuk Mokhzani Mahathir

Lowering its debt level Meanwhile, there have been rumblings that the company could be overgearing itself following the purchase of Newfield. It now has long-term and short-term borrowings totalling RM10.8bil, which includes the loan from its merger to Kencana Petroleum and bridging facility for the acquisition of tender rigs business. Presently it has an orderbook of RM25bil and cash of RM1.1bil in cash. Shahril explains it has already been made known that SapuraKencana plans to undertake longer term financing to achieve an optimal capital structure. We were in a situation when some of the shorter term bonds were matched to the long -term contracts. So what we are doing now is to combine the bonds, and match it to the businesses and the tenures of the contracts that we have. The debt will be matched to the long-term nature of the assets we have purchased, he says. Shahril says that one cannot grow a company without debt. You need to see where the debt is going. When we buy something, there are many assets that come with it. Take the Sapura 3000, a pipe laying barge that we bought in the early days. (At a price of US$220mil). We issued convertible bonds for it. Today, it is one of our most prized assets. So now we have contracts of RM25bil, but there is cashflow and resources to back it. What we have to manage is the execution of those projects, says Shahril. Shahril says that while its still early days, capital expenditure required to produce the fields of Newfield would be at least RM1bil per year. The few analysts that have issued their reports are mostly positive on the deal. AmResearch analyst Alex Goh in his AmResearch report sees the Newfield acquisition as a highly attractive entry for a new domestic PSC operator. In fact, based on his numbers, he sees a 42.7% increase jump in SapuraKencanas net profit to RM1.26bil for its financial year ended Jan 31, 2015.