Sapura Energy net loss narrows in fourth quarter

PETALING JAYA: Sapura Energy Bhd’s (formerly known as SapuraKencana Petroleum Bhd) net loss for the fourth quarter ended Jan 31, 2017 narrowed to RM172.32 million from RM1.29 billion a year ago.

In a filing with Bursa Malaysia last Friday, the group said the loss during the quarter includes a provision for impairment on property, plant and equipment as well as oil and gas properties of RM282.7 million.

During the corresponding quarter of the preceding year, the loss included a deposit on acquisition of oil and gas assets written off amounting to RM172.5 million. Excluding these items, the group recorded pre-tax profit of RM157.4 million compared with RM8.2 million a year ago.

The engineering and construction segment’s operating loss worsened to RM37.69 million from RM15.54 million a year ago while the drilling segment’s operating loss narrowed to RM157.48 million from RM170.25 million a year ago.

However, the energy segment posted an operating profit of RM74.06 million during the quarter compared with an operating loss of RM904.15 million a year ago.

Revenue for the quarter fell 18.76% to RM1.81 billion from RM2.23 billion a year ago due to lower revenue contribution from the drilling and energy segments.

For the financial year ended Jan 31, 2017 (FY17), the group achieved a net profit of RM208.32 million compared with a net loss of RM791.56 million a year ago while revenue fell 24.87% to RM7.65 billion from RM10.18 billion a year ago. The board of directors declared a tax exempt single tier interim dividend of 1 sen per share in respect of FY17, to be paid on April 28, 2017.

Despite the improvement in crude oil prices in recent months, the outlook remains uncertain and the board expects the challenging environment to persist in the short and medium term.

The group said it will continue to strengthen its position in existing markets and expand into new markets. It will continue to re-base costs and improve operational efficiency. It also expects its recently completed refinancing exercise to further strengthen its fundamentals.