Sapura Energy’s first quarter net profit falls 75%

PETALING JAYA: Sapura Energy Bhd’s net profit for the first quarter ended April 30, 2017 plummeted by 75.04% to RM27.53 million from RM110.31 million in the previous year’s corresponding quarter on higher taxation.

Sapura Energy paid taxes of RM76.97 million for the quarter under review compared with RM14.59 million for the same quarter in the preceding year.

Profit before taxation for the first quarter was 19.3% lower at RM104.4 million compared with RM124.6 million for the corresponding quarter in 2016, on lower profit from its drilling segment.

Revenue for the quarter fell by 8.85% to RM1.77 billion from RM1.94 billion in the preceding year’s corresponding quarter, due to lower contributions from its drilling and explorations, and production segments.

Citing uncertainties looming around crude oil prices, Sapura expects the trend of low levels of capital spending to continue.

While anticipating a challenging environment in the short and medium-term, the board is confident that it will be able to navigate through the period with its strategic and operational plans.

“The group remains committed to its key strategies of replenishing the order book, continuing to re-base costs and improving operational efficiency. In addition, the group’s recently completed refinancing exercise, which is part of its proactive capital management initiative, will further strengthen the group’s fundamentals,” its board said.