KUALA LUMPUR: Sapura Energy Bhd
has engaged advisors to evaluate and advise on the potential listing of its exploration and production (E&P) business.
This confirms a StarBiz Premium article last week that the integrated oil and gas (O&G) company was mulling the listing of its E&P arm following the recovery in crude oil prices.
“We refer to the recent articles with regards to the proposed listing of the E&P arm of Sapura Energy.
“These articles had alluded to the listing of the company’s E&P business which would, among others, provide an avenue for the company to monetise its assets.
“The board of directors and management would like to inform that the company has engaged advisors to evaluate and advise on the potential listing of the E&P business,” the company said in a filing to Bursa Malaysia on Thursday.
It said that the company would make the necessary announcement in compliance with Bursa Malaysia Securities’ Main Market Listing Requirements should there be any material development on this matter.
Besides E&P, Sapura Energy has exposure to the engineering and construction (E&C) and drilling segments.
Of these divisions, E&P is the more stable of its business that has been hard hit by the downturn in the O&G industry that started from mid-2014 until the third quarter of last year.
It was the only segment that made an operating profit for the third quarter ended Oct 31, 2017.
For that quarter, Sapura Energy reported a net loss of RM274.4mil - a steep decline from the net profit of RM158.1mil made for the same quarter last year and the RM29.4mil in the preceding second quarter.
At noon market close, shares of Sapura Energy was up two sen to 81 sen with 94.37 million shares done.
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