Sapura Energy posts RM126mil net loss in Q2

Sapura Energy said it has engaged advisors to evaluate and advise on this potential exercise, confirming a recent StarBiz Premium article.

KUALA LUMPUR: Sapura Energy Bhd posted a net loss of RM126.05mil in the second quarter ended July 31, 2018 compared with a net profit of RM28.92mil a year ago, in line with the lower revenue.

The group revenue of RM1.25bil in the second quarter was 23.9% lower than RM1.65bil last year, mainly attributable to the lower revenue from engineering and construction and drilling business segments. 

Its loss per share for the quarter stood at 2.12 sen against 0.49 sen earnings per share. 

Sapura Energy’s engineering and construction recorded revenue of RM779.5mil, which was 38.2% lower than the revenue of RM1.26bil in Q2 FY2018, in line with the lower activities during the current quarter.

The segment recorded a loss before taxation for the current quarter of RM20.5mil which was lower by RM147.1mil compared to profit before taxation of RM126.7mil in Q2 FY2018, in line with the lower revenue in the current quarter.

Its drilling segment revenue for the current quarter stood at RM253.5mil, 9.0% lower than the revenue of RM278.6mil in Q2 FY2018, mainly due to the unfavourable effect of US dollar weakening against ringgit quarter on quarter.

The exploration and production segment recorded revenue of RM227.6mil, 40.5% higher than the revenue of RM162mil in Q2 FY2018, due to the higher liftings and the effect of the higher average realised oil and gas price achieved in the current quarter compared to Q2 FY2018.

For the first six months to July 31, Sapura Energy posted a net loss of RM261.78mil, or 4.40 loss per share on revenue of 2.31bil.

Commenting on its prospects, Sapura Energy said the group was well-positioned to capitalise on the recovery in the industry amidst the sustained and buoyant oil prices which is driving increase in activities in the industry globally.

It said the group had seen an upward trend in bidding and prospective opportunities globally which has translated to increased contract wins during the year. 

For the financial year to-date, the group has won RM5.3bil of new contracts across its engineering and construction and drilling businesses which has resulted in the group’s orderbook increasing to RM16.9bil. 

The growing orderbook provides the platform for increasing revenue and higher utilisation of the group’s assets in the future.

“The ongoing and future bids are for an increasing number of customers and for larger contracts in different geographical areas. In order to win and execute the increased volume of work, the group has taken steps to strengthen its balance sheet. 

“The first step involves the company undertaking a proposed rights issue to fuel future growth,” Sapura Energy said. 

In addition, the group announced that it had entered into heads of agreement with Austria’s OMV Aktiengesellschaft to form a strategic partnership in the E&P business involving the proposed sale of 50% equity stake in the business.