Sapura Energy Q3 net loss widens to RM101mil
PETALING JAYA: SAPURA ENERGY BHD’s quarterly net loss has widened more than three times despite a vast improvement in its revenue.
Net loss for its third quarter ended Oct 31,2019 dropped to RM100.89mil from RM31.09mil a year ago due to a steep rise in operating expenses, its financial statements showed.
The oil & gas company’s topline or revenue for the third quarter rose to RM1.777bil or 47.35% year-on-year (y-o-y) from RM1.206bil in the corresponding quarter.
“The results reflect the large volume of projects or activities that are in their early execution phases, involving mainly engineering and procurement, with lower project margins, ” the company said in its press release.
“Depreciation and amortisation as well as finance costs have reduced as an outcome of impairments undertaken in the previous financial year and repayment of borrowings earlier this financial year, respectively, ” the company added.
In the year-to-date period for the first nine months of the year, its net loss also widened to RM326.3mil y-o-y from RM292.88mil in the same YTD period of last year.
Revenue for the YTD period however jumped to RM5.337bil y-o-y from RM3.083bil in the same period a year ago.
“Our performance in the first nine months reflected our resilience to sustain our businesses amidst prevailing market conditions. We will continue to focus on turning the corner as we further enhance operational performance, and identify and pursue opportunities globally, ” Sapura Energy president and group CEO Tan Sri Shahril Shamsuddin.
The company said that outlook for the oil and gas industry continues to remain challenging.
It said it will pursue global opportunities as part of its market expansion strategy, to leverage on its capabilities, track record and strong asset base.
It said that its orderbook stood at RM15.1bil with cumulative new contract wins to-date in the financial year 2020 of RM3.7bil.
The company also at the same time announced it secured several new contracts and contract extensions in its engineering and construction (E&C) as well as drilling segments yesterday.
The company said its unit, Sapura Fabrication Sdn Bhd won a contract from Hess Exploration And Production Malaysia B.V under the Petronas Frame Agreement, for the provision of engineering, procurement, construction, commissioning plus installation for Full Field Development (FFD) Phase 3 Facilities, North Malay Basin, offshore Peninsular Malaysia.
Sapura Fabrication also undertook work on FFD Phase 1 and FFD Phase 2 Facilities for Hess, it said.
It will also be undertaking its first deep-water project in Area 4, Rovuma Basin, offshore Mozambique, the company said.
The contract, awarded by Mozambique Rovuma Venture S.p.A, is for the provision of a subsea installation vessel for transportation and installation of Christmas Trees.
Meanwhile, for its drilling segment, Sapura Drilling Asia Sdn Bhd, was awarded a contract extension for the provision of its semi-submersible tender assist drilling rig, Sapura Esperanza, by Sarawak Shell Bhd/ Sabah Shell Petroleum Company Ltd.
The contract, which will see it drill six wells for the Malikai phase 2 drilling campaign, offshore Sabah, will see works commencing in the third quarter of FY21, it said.
Source: TheStar