Sapura Energy second quarter loss narrows to Rm116.3mil
KUALA LUMPUR: Sapura Energy Bhd narrowed its loss to Rm116.31mil in the second quarter ended July 31,2019 from Rm126.05mil a year ago, underpinned by an improvement in its revenue.
The integrated oil and gas services and solutions provider in a filing with Bursa Malaysia yesterday said its revenue increased sharply by 86.7% to Rm1.927bil from Rm1.032bil a year ago. Loss per share was reduced to 0.73 sen from 3.35 sen.
Sapura Energy added its engineering and construction segment recorded more than 100% increase in profit-before-tax of Rm27.2mil. The drilling segment posted a 39% improvement on a loss-before-tax to Rm35.7mil.
“Secured new contract wins totalling Rm774mil. Value of cumulative new contract wins year-to-date amounts to approximately Rm3.1bil, bringing the order book value to Rm16.30bil, ” it said.
Its president and group CEO Tan Sri Shahril Shamsuddin said Sapura Energy’s top line growth has been encouraging and “we are ramping up our operations to execute new contracts and serve new markets as well as new customers”.
He added this growth momentum was expected to improve its bottom line as it gradually progressed the projects to the next stages.
He noted the group’s engineering & construction (E&C) segment continued to show a recovery. Its revenue increased to Rm1.7bil, which was more than double from Q2 FY19 due to the higher activities during the quarter.
“The improved revenue enabled the segment to record a profit-before-tax of Rm27.2mil for the quarter under review, from a loss-before-tax of Rm20.5mil in Q2 FY19, ” Shahril said.
In the first half, its net loss reduced to Rm225.41mil from Rm261.79mil in the previous corresponding period.
Its revenue jumped by 89.6% to Rm3.559bil from Rm1.877bil.
The company also announced it has secured three new contracts and two contract extensions worth about Rm774mil, raising the total amount of contracts to about Rm3.10bil.
Sapura Energy said with these new wins, the group will be executing works in Malaysia, Thailand and Brunei.
Sapura Fabrication Sdn Bhd bagged a contract from Brunei Shell Petroleum Company Sdn Bhd (BSP) to provide engineering, procurement, construction and installation (EPCI) works for the Salman Project in Brunei.
It said the project comprised the Salman greenfield scope and the Egret East greenfield scope.
The Egret East greenfield scope consists of front-end engineering design (FEED) services with an optional EPCI scope for wellhead platforms, substructures and pipelines.
Sapura Energy said in Malaysia, Sapura Fabrication secured a contract from Petronas Carigali Sdn Bhd to provide procurement, construction, hook-up and commissioning (PCC), and start-up works of BNJTK BN-84 well tie-in for Bardegg-2 and the Baronia enhanced oil recovery (EOR) development project.
It also said its drilling unit Sapura Drilling Asia Ltd won a contract with PTT Exploration and Production PLC to provide its tender-assist drilling rig, Sapura T-17, for the Bongkot gas field in the Gulf of Thailand.
Meanwhile, Petronas Carigali Sdn Bhd had extended a contract with Sapura Drilling Asia Sdn Bhd to provide its semi-submersible tender-assist drilling rig, Sapura Berani.
The contract entails the drilling of five additional wells in Erb West, offshore Sabah and the Dulang facilities, offshore Peninsular Malaysia.
Sapura Drilling was also awarded a oneyear contract extension by BSP to provide its semi-submersible tender-assist drilling rig, Sapura Pelaut.