SapuraEnergy returns to the black with RM207.55 million FY19 net profit

KUALA LUMPUR: Sapura Energy Bhd has returned to the black with a net profit of RM207.55 million for the financial year ended Jan 31, 2019 ( FY19) compared with a net loss of RM2.5 bi l lion in the preceding year.

Revenue, however, slipped to RM4.57 bi l l ion from RM5.05 billion previously, primarily due to lower revenue from the engineering and construction, and drilling business segments.

In a fi ling with Bursa Malaysia yesterday, Sapura Energy said the increase in net profit included a gain of RM2.7 billion from the sale of its 50 per cent stake in its exploration and production ( E& P) business through a strategic partnership with Austria’s OMW AG.

“It also includes a provision for impairment of RM1.5 bi l l ion, pr ima r i ly for drilling, and engineering and construction assets,” it said.

President and group chief executive officer Tan Sri Shahril Shamsuddin said despite a challenging year, Sapura Energy had raised RM7.6 billion in two major corporate exercises.

“This has enabled us to reduce our net gearing to a healthy 0.6x and provided the financial flexibility for the group to bid for and execute higher value projects, in addition to gaining a strong partner for our E& P business,” he said.

For the fourth quarter ( Q4) ended Jan 31, 2019, Sapura Energy posted a net profit of RM 500 million and revenue of RM1.49 billion.

“On a quarter to quarter basis, the group’s engineering and construction business segment recorded an 88 per cent increase in revenue from RM0.7 billion in Q4 FY18 to RM1.3 billion in Q4 FY19, in line with higher activities during the current quarter,” it said.

Sapura Energy said new contract wins for FY19 of RM9.3 billion, an increase of 230 per cent from the previous year, had lifted the current order book to RM17.2 billion, the highest in two years.

“The group continues to aggressively pursue new opportunities in the Middle East, Africa, Asia Pacific, Europe and the Caspian, and the Americas.

“The expanding order book and focus on execution are expected to further boost asset utilisation, thus contributing to improving the group’s financial performance,” it added.

The group also declared a special dividend of 0.5 sen per share to be paid on June 24, 2019. — Bernama