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Sapura Energy Q1 net loss narrows, bags RM1b contracts

PETALING JAYA: Sapura Energy Bhd’s net loss for the first quarter ended April 30 narrowed to RM109.1 million from RM135.73 million a year ago, mainly due to lower depreciation and amortisation and net forex gain.

The group revenue of RM1.63 billion was 93.2% higher than the RM845.17 million in the corresponding quarter of the preceding year, mainly attributable to the higher revenue from engineering & construction and drilling business segment.

Sapura Energy said the oil and gas industry is expected to continue to operate in a challenging environment arising from market uncertainties and geopolitical risks. However, tendering activities remained robust in many of its key markets with the group aggressively pursuing new opportunities in the Middle East, Africa, Asia Pacific, Europe, the Caspian and the Americas.

The group has been able to grow its orderbook of RM17.3 billion as demonstrated by its cumulative new contract wins to-date in FY2020 of RM2.3 billion.

The group said it will remain focused on growing the orderbook and maintaining strong operational performance.

Meanwhile, Sapura Energy has been awarded 10 new contracts for its engineering & construction and drilling segments, valued at RM1 billion.

The new contract wins, secured across Malaysia, Thailand, Taiwan and Australia, include its first offshore wind farm contract. In addition, the group has been selected for a frame agreement with Petronas for fixed offshore structure works.


Malaysia’s business outlook looking positive: HSBC survey

KUALA LUMPUR: Malaysia’s business outlook is looking positive in the near future with 80% of the businesses expecting growth in the next one to two years, according to the latest survey by HSBC.

HSBC Malaysia Sdn Bhd in a statement said the survey titled ‘Navigator: Made for the Future’ revealed that 16 per cent of exporters expect their business to grow over five per cent during the period and a further half (51%) expecting a 3% to 5% increase.

It said local companies expected that growth would be driven by an increasing or stable customer base (34%) and the availability of quality suppliers and raw materials (25%).

Of these, increasing sustainability demands (30%) is considerably above the global average (22%).

“There is a clear balance in favour of those seeing more opportunities than threats (50% versus 16%), and one-third seeing them as being equally balanced (34%).

“However, new competitors and competitors’ performance (32%) is seen as the main threat for businesses. The proportion of businesses who feel this way in Malaysia is one of the highest across all markets, with the global average being 25%,” it said.

The survey said although almost all (98%) of Malaysian businesses feel that innovation is important, they also see three key barriers which are similar to those seen globally, namely cost (53%), skill shortage (34%) and uncertain return on investment (32%).

HSBC Malaysia chief executive officer Stuart Milne said by improving productivity and integrating technologies into their business models, companies in Malaysia can improve the quality of their goods and services and better meet the needs and expectations of their evolving customer base.

“Businesses in Malaysia are putting their people at the heart of what they do, with 24% of Malaysian companies sharing that they will be investing in the skills of their workforce to ‘future proof’ for success.

“Compared to other markets in Asean, Malaysia scores the highest (26%) when it comes to bringing skills and experience into the business,” said Milne.

The survey report surveyed over 2,500 businesses with turnover of US$5 million or above from 14 key markets globally, including 200 from Malaysia.