Sapura Energy back in the black in Q4 on disposal gain

PETALING JAYA: Sapura Energy Bhd posted a net profit of RM500.43 million in the fourth quarter ended Jan 31, 2019 compared with a net loss of RM2.29 billion in the previous year’s corresponding quarter, driven by a gain on disposal.

Its revenue rose 64.5% to RM1.49 billion from RM902.70 million, mainly attributable to the higher revenue from its engineering and construction (E&C) business segment.

For the under review, Sapura Energy saw a net profit of RM207.55 million against a net loss of RM2.50 billion a year ago. This included a gain of RM2.7 billion from the sale of a 50% stake in its exploration and production (E&P) business, through the strategic partnership with OMV, and a provision for impairment of RM1.5 billion, primarily for drilling, and E&C assets.

However, full-year revenue fell 9.55% to RM4.57 billion from RM5.05 billion a year ago.

The group has declared a special dividend of 0.5 sen per share.

Sapura Energy president and group CEO Tan Sri Shahril Shamsuddin said its focus for the financial year 2019 was to strengthen its balance sheet and position the group to capitalise on the emerging opportunities.

“Despite the challenging year, we successfully completed two major corporate exercises, where we raised RM7.6 billion. This has enabled us to reduce our net gearing to a healthy 0.6 times and provided the financial flexibility for the group to bid for and execute higher value projects, in addition to gaining a strong partner in our E&P business,” he said in a statement.

In FY20, Sapura Energy will remain focused on growing and executing the order book as well as delivering strong operational performance.

New contract wins for FY19 of RM9.3 billion, an increase of 230% from the previous year, has lifted the current order book to RM17.2 billion, the highest in two years.

Sapura Energy continues to aggressively pursue new opportunities in the Middle East, Africa, Asia , Europe and the Caspian, and the Americas. The expanding order book and focus on execution are expected to further boost asset utilisation, thus contributing to improving the group’s financial performance.

With the increasing activities, stronger balance sheet and encouraging potential growth prospects, the board is confident that the group is strongly positioned to grow further and increase shareholder value.

Source: The Sun Daily

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