Q3 loss for Sapura Energy

> Due to lower contribution from core business segments, smaller share of profit from joint ventures

PETALING JAYA: Sapura Energy Bhd fell into the red in the third quarter ended Oct 31, 2017 registering a net loss of RM274.41 million against a net profit of RM158.06 million a year ago, due to lower contribution from the engineering and construction and drilling segments as well as lower share of profit from joint ventures.

Its share price slid 24.5 sen or 20.2% to close at an intraday low of 96.5 sen yesterday on some 128.54 million shares done, and was the most actively traded stock.

The lower contribution from joint ventures was due to share of loss incurred from the disposal of vessel by Sapura Acergy amounting to RM46.1 million.

Its revenue slumped 42.4% to RM1.28 billion from RM2.22 billion a year ago.

Sapura Energy said in a Bursa Malaysia filing that the group’s performance is a reflection of the prolonged low levels of capital spending within the industry.

The board, which anticipates the challenging environment to persist in the short and medium term, said the recent increase in tendering and bidding activities across key geographic regions will enable Sapura Energy to replenish its order book, strengthen its existing markets and enable it to expand into new markets.

“In the exploration and production segment, the group has successfully completed its first gas development project, the SK310 B15 field, which will contribute to the group’s revenue going forward,” it noted.

On top of that, the group is considering various strategic and operational plans to mitigate the impact and improve its competitive position.

Sapura Energy remained in the red for the cumulative period of nine months, with a net loss of RM217.95 million against a net profit of RM380.64 million in the previous financial year. Revenue fell 19.4% from RM5.84 billion to RM4.71 billion in the previous nine months period.