Sapura Energy slips to RM126m net loss in 2Q

Board optimistic performance to continue improving  on increasing activities and efforts to boost balance sheet

By FARA AISYAH

Sapura Energy Bhd posted a net loss of RM126.06 million in the second quarter ended July 31, 2018 (2QFY19), against a net profit of RM28.93 million a year ago due to lower revenue achieved in the three months.

The company’s revenue fell 24.1% year-on-year, mainly attributable to the lower revenue from the engineering and construction businesses, as well as the drilling segment. As such, Sapura Energy reported a revenue of RM1.26 billion in 2QFY19, from RM1.66 billion a year ago.

In an exchange filing last week, the company said its engineering and construction segments recorded a total revenue of RM779.5 million in 2QFY19, which was 38.2% lower than the RM1.26 billion posted last year.

The drilling segment’s revenue of RM253.5 million for the quarter was 9% lower than the RM278.6 million recorded in 2QFY18, mainly due to the unfavourable effect of the US dollar weakening against the ringgit quarter-on-quarter.

Meanwhile, Sapura Energy’s exploration and production business recorded a revenue of RM227.6 million, which was 40.5% higher than the RM162 million posted in 2QFY18, due to the higher liftings and the effect of the higher average realised oil and gas prices achieved in the current quarter compared to the previous year.

The company said the 2QFY19 results are an improvement from the previous quarter and the board viewed this to be a reflection of the group being in a positive transition.

“The recently awarded projects are in the early execution phases of engineering and procurement. This quarter (2QFY19) sees a lower utilisation of the main vessels due to completed projects and are in the pre-mobilisation stage for the recently secured work.

“With the increasing activities and efforts to strengthen the balance sheet, the board is optimistic that the group will continue to improve its performance,” Sapura Energy noted.

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

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