Sapura Energy suffers RM126 mil net loss in Q2

KUALA LUMPUR: Sapura Energy Bhd suffered a net loss of RM126.05 million for the second quarter (Q2) ended July 31, 2018 compared with a net profit of RM28.92 million in the same period a year ago.

Revenue declined 23.9% to RM1.26 billion from RM1.66 billion previously.

“The losses were mainly attributable to lower revenue from the engineering, construction and drilling business segments,” it said in a filing with Bursa Malaysia today.

In a separate statement, the group said the Q2 results were in line with expectations and its recent contract wins were in the early stages of execution.

“The group’s main vessels are in between projects as they are being mobilised for new work. As these projects move from the engineering and procurement phase to fabrication and offshore construction phase, we expect to see an increase in the utilisation of assets,” it said.

Sapura is also actively venturing into more markets in key regions, including the Middle East, Africa, Latin America, Caspian and Mediterranean, as well as Southeast Asia and Australia.

To date, the group has secured RM5.3 billion in contract wins across its engineering, construction and drilling businesses, bringing its total order book to RM16.9 billion.

“The growing order book provides long-term visibility of the group’s future that will translate into higher utilisation of the group’s assets and an increase in revenue,” it said.

Meanwhile, for the first six months of the financial year ending Jan 31, 2019 (FY19), Sapura posted RM2.3 billion in revenue compared with RM3.4 billion in same period in FY18.

It mainly attributed the drop in the revenue to lower activities and asset utilisation in the services segment.

“Revenue for exploration and production showed improvement as a result of higher lifting and average realised oil and gas price in the current period.

“Amid the sustained and buoyant oil prices, which are driving an increase in activities in the industry globally, the group is well-positioned to capitalise on the recovery in the industry,” it added.