Sapura Energy sees better year ahead


SAPURA Energy Bhd is confident that the turnaround trends seen in the third quarter (3Q) and 4Q of financial year 2021 (FY21) will lead to better group performance in FY22.

Its group CEO Datuk Mohd Anuar Taib (picture) said the board of directors expects a recovery in the energy industry, following improving oil prices and the rollout of Covid-19 vaccination programme globally.

“The addressable market for the group has increased significantly in the five years, with current bids and prospects valued at RM123 billion, of which 6% represents opportunities in offshore wind.

“More success in the renewable energy sector bodes well for the group’s transition beyond oil and gas (O&G),” he said in a statement yesterday.

Sapura Energy narrowed net loss to RM216 million in 4Q21 (from RM4.24 billion net loss in 4Q20.

This improvement is mainly contributed by improvement in project margins from the engineering and construction (E&C) business segment, higher share of profit from associates and joint ventures, lower net finance cost reduced by the net foreign-exchange loss and restructuring expenses.

The group posted a revenue of RM1.44 billion for 4Q21, 29.8% higher than RM1.11 billion in the corresponding quarter of the preceding year mainly attributable to the higher revenue from E&C in line with the progress of projects being executed in the current quarter.

Sapura Energy recorded a net loss of RM160.87 million in FY21 compared to RM4.56 billion net loss posted in the previous financial year.

For a full year, the group revenue is RM5.35 billion, 17.1% lower than the corresponding year of RM6.45 billion, primarily due to the lower revenue from E&C and drilling business segments in line with the progress of projects being executed and lower effective day rates resulted from restricted movement and lockdown measures in multiple jurisdictions brought about by the Covid-19 pandemic.

Meanwhile, Sapura Energy announced its wholly owned subsidiaries in E&C have been awarded six contracts with a combined value of approximately RM1 billion.

The awards include a turnkey contract for the North Malay Basin full field development Phase 4A facilities from long-time client Hess Exploration and Production Malaysia BV; and engineering, procurement, construction and installation of Mubadala Petroleum LLC’s gas and condensate mercury removal unit at the Pegaga integrated central processing platform.

Notable awards in FY21 include a contract for three new wellhead platforms at the Zuluf, Ribyan and Abu Safah oil fields from Saudi Aramco.

The group also won awards for pipeline construction in the Al-Khalij field, Qatar.

Sapura Drilling Asia Sdn Bhd was also awarded two new contracts in Ivory Coast and Congo.

With a current orderbook at RM13.7 billion, the group has secured about 80% of its revenue for FY22.

Sapura Energy’s shares closed unchanged at 13 sen yesterday, valuing the group at RM2 billion.