Sapura Energy bags contracts worth RM1b locally and overseas

KUALA LUMPUR: Sapura Energy Bhd’s engineering and construction and drilling segments have bagged new contracts worth around RM1 billion.

The contract wins, secured in Malaysia, Thailand, Taiwan and Australia, include its first offshore wind farm project.

The company has also been selected for a frame agreement with Petroliam Nasional Bhd (Petronas) for fixed offshore structure works.

“In line with its growth strategy, Sapura Energy has continued to establish strong presence in existing core markets, enter new markets and expand its scope of services,” it said in a statement.

The group’s growing order book would increase the utilisation of its assets and contribute to its financial performance, it added.

Sapura Energy’s subsidiary, Sapura Fabrication Sdn Bhd, also secured a six-year frame agreement to provide engineering, procurement and construction of fixed offshore structure works.

The agreement consists of two packages — for fixed offshore structures exceeding 7,500 tonnes and those not exceeding or equal to 7,500 tonnes.

For the first offshore wind farm contract, Sapura Offshore Sdn Bhd secured a job from Yunneng Wind Power Co Ltd to provide transportation and installation of offshore wind turbine substructures.

Other works include mobilising three drilling rigs in Malaysia and Thailand, and delivering a range of engineering and construction services and solutions.

Sapura Energy’s revenue grew 93 per cent to RM1.6 billion in the first quarter of its financial year ending January 31 next year, compared with RM845 million a year ago.

It posted a lower net loss of RM109 million compared with RM135.7 million previously.

With the completion of its corporate exercise, Sapura Energy had benefited from cost savings following the repayment of RM7.2 billion in borrowings, it said.

Its net debt-to-equity stood at 0.66 times from a high of 1.73 times as at end-October last year.