Sapura Energy secures RM1.4b worth of contract wins

Sapura Energy Bhd’s engineering and construction (E&C), drilling, and operations & maintenance (O&M) business segments have secured 10 contract wins between December 2022 and May 2023. 

These wins amount to a combined value of approximately RM1.4 billion, with more than 70% of the contracts coming from projects outside of Malaysia.

It told the stock exchange that the E&C business segment secured contract wins worth RM979 million. 

One of the notable contracts is with ENI Congo for offshore transportation and installation (T&I) services in the Republic of Congo. Sapura Energy said the project is expected to be completed by the fourth quarter of 2023.

In Thailand, Sapura Energy (Thailand) Limited won two contracts for offshore wellhead platform and pipeline installation and removal activities.

These contracts were awarded by Chevron Thailand Exploration and Production Ltd and are targeted for completion by the end of 2023.

In Australia, Normand Sapura Pty Ltd, a subsidiary, received a contract from Woodside Energy Ltd for the intervention and removal of a plug within the wellbore of the Tidepole TPA03 subsea well. The project is anticipated to be completed by the third quarter of 2023.

The drilling business segment secured contract wins worth RM352 million. Sapura Drilling Asia Sdn Bhd received multiple contracts for the provision of semi submersible tender-assist drilling (TAD) rig services in Malaysia. 

These contracts involve the utilisation of rigs such as Sapura Berani, Sapura Esperanza, Sapura Pelaut, and Sapura Alliance. The contracts are expected to be completed by the fourth quarter of 2023.

Meanwhile, its O&M business segment secured contract wins worth RM34 million. 

Sapura Technology Solutions Sdn Bhd secured a contract from Petronas Carigali Sdn Bhd (PCSB) for additional Field Service Engineer (FSE) services on a turnaround (TA) call-out basis. The project is scheduled for completion in the fourth quarter of 2023. 

Sapura Nautilus Sdn Bhd, another subsidiary, was granted a contract from SapuraOMV Upstream (Sarawak) Inc to provide one dynamic positioning accommodation workboat vessel for E11R-B Host Tie-In Modification Works for the year 2023.

Sapura Energy said the recent contract wins are a testament to the company’s resilience and its shift in bid strategy to focus on contracts and regions where it has a strong competitive advantage. 

“Deploying some of our assets to new regions enabled us to secure new clients as well as overcome limitations brought on by financial constraints,” said Sapura Energy Group CEO Datuk Mohd Anuar Taib.

According to Sapura, the shift in bid strategy has yielded positive results, as evidenced by the company’s financial performance in FY2023.

Despite limited working capital and macroeconomic challenges, Sapura Energy recovered from an operating loss of RM2.2 billion in the previous financial year to achieve an operating profit of RM751 million in FY2023.

Building on this positive momentum, Sapura Energy is determined to extend its turnaround and further explore opportunities in the Eastern and Western Hemispheres. 

By maximising its assets and capabilities, the company aims to capitalise on potential growth prospects in these regions.

Sapura Energy’s share price slipped by half a sen or 12.50% and closed at 3.5 sen today, while the market capitalisation stood at RM559 million. –TMR