Sapura shares surge on contract win
KUALA LUMPUR: Sapura Energy Bhd has secured a contract from Mubadala Petroleum to undertake engineering, procurement, construction, installation and commissioning works for the Pegaga gas development field in Block SK320, offshore Sarawak.
The news had pushed Sapura Energy’s shares as much as 4.5 sen, or nine per cent, higher to 53 sen yesterday.
The stock eventually closed 6.19 per cent higher to 51.5 sen, from Tuesday’s close of 48.5 sen.
Its trading volume jumped 229.7 per cent to 160.9 million shares.
Sapura Energy said the contract was awarded to its wholly-owned Sapura Fabrication Sdn Bhd by Mubadala Petroleum following the Final Investment Decision by the company and its partners Petronas Carigali Sdn Bhd (PCSB) and Sarawak Shell Bhd.
“This is our sixth contract win since the beginning of the year. It’s a good start for us. We are proud to be working with a highly-respected company such as Mubadala Petroleum and supporting its first development in Malaysia,” said Sapura Energy president and group chief executive officer Tan Sri Shahril Shamsuddin.
Sapura Energy views the increased capital spending by oil and gas firms as an indication that the industry is making a gradual shift towards better times amid renewed optimism.
The latest contract comes on the back of the group’s five contract wins earlier this year with PCSB, Hess Exploration and Production Malaysia BV, Malaysia Marine and Heavy Engineering Sdn Bhd, and Mumbai Port Trust, bringing a combined value of nearly RM3 billion in contract wins to date.
“This contract win is a recognition of our strong track record and technical capabilities in delivering innovative technologies and fit-for-purpose solutions. Our focus is to deliver safely and cost efficiently, without compromising on quality,” said Shahril.