Sapura Energy falls into the red in Q1, weighs E&P listing

PETALING JAYA: Sapura Energy Bhd fell to the red in the first quarter ended April 30,2018 with a net loss of RM135.73 million against a net profit of RM27.53 million recorded in the same quarter a year ago, due to lower contribution from its engineering and exploration and production (E&P) segment while its drilling recorded losses as certain rigs went off contract.
Revenue, on the other hand, fell 40.38% to RM1.05 billion from RM1.77 billion.
Commenting on its prospects, the group said it is optimistic that the gradual recovery in the industry will improve the medium- to long-term outlook. It also remains committed to strengthening the financial position and has identified several initiatives, including the potential listing of the E&P business and a possible capital raising exercise.
Sapura Energy's services segment has witnessed a significant increase in new orders and the recent contract wins have brought the group's total new wins to date to RM4.5 billion, which is expected to contribute positively towards its earnings from the current financial year and beyond.
Notable contract wins for the engineering and construction (E&C) segment are the EPCIC Pegaga Gas Development contract in Malaysia and the EPC gas pipeline (Ayatsil Line 16) contract in Mexico.
Meanwhile, it said the E&P segment has marked significant milestones including taking final investment decision to develop Gorek, Larak and Bakong as phase 1 of its SK408 gas fields which represents a critical milestone in unlocking value and providing visibility of our long-term gas monetisation plans."
"The recent ninth discovery in the Pepulut field further reinforces our commitment to realise the full potential of our highly prospective gas fields in SK408. Additionally, our entry into Mexico's Block 30 with the recent PSC signing and farm-ins into five offshore exploration permits in New Zealand provide new growth opportunities for the business in the long term."
Sapura Energy's share price fell 1.54% to 64 sen with 65.13 million shares done.