Sapura Energy records RM208m net profit

KUALA LUMPUR: Sapura Energy Bhd posted a net profit of RM208 million in the year ended January 31 compared with a net loss of RM2.5 billion previously.

This was largely attributed to a gain of RM2.7 billion from the sale of a 50 per cent stake in Sapura Energy’s exploration and production (E&P) business to OMV of Austria.

President and chief executive officer Tan Sri Shahril Shamsuddin said the OMV deal and a rights issue had raised RM7.6 billion.

“Our focus was to strengthen our balance sheet and position the group to capitalise on the emerging opportunities. Despite the challenging year, we successfully completed two major corporate exercises, where we raised about RM7.6 billion.

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

Sapura Energy declared a special dividend of 0.5 sen per share.

In the fourth quarter, the group posted a net profit of RM500 million, which included a gain on disposal and provision for impairment.

Revenue rose 41.9 per cent to RM1.7 billion in the fourth quarter, mainly attributable to the higher revenue from its engineering and construction segment.

Sapura Energy will remain focused on growing its order book as well as delivering strong operational performance.

“New contract wins of RM9.3 billion, an increase of 230 per cent from the previous year, had lifted the order book to RM17.2 billion, the highest in two years,” said the firm.