Sapura Energy records Q3 loss of RM274m

KUALA LUMPUR: Sapura Energy Bhd suffered a net loss of RM274.4mil in its third financial quarter versus a net profit of RM158.06mil a year ago as it recorded lower contributions from its engineering and construction (E&C) and drilling segments as well as lower share of profit from joint ventures.

The lower contribution from joint ventures was owing to a share of loss in the disposal of vessel from SapuraAcerby amounting to RM46.1mil.

For the quarter under review, group revenue declined 42% to RM1.28bil from the previous-year quarter.

Sapura Energy said industry conditions remained challenging and its performance was a reflection of the prolonged low levels of capital spending within the industry. 

Moving forward, the group said it would focus on replenishing its orderbook in its existing markets as well as in new markets.

It added that its exploration and production (E&P) segment had completed its first gas development project, the SK310 B15 field, which will contribute to revenue going forward.

"The Board anticipates the challenging environment to persist in the short and medium term. However, the Board is currently considering various strategic and operational plans to mitigate the impact and improve the competitive position of the Group."

In the quarter under review, the group's E&P segment recorded a higher revenue of RM207.7mil, or RM11.2mil higher than RM196.5mil recorded in the previous corresponding quarter owing to higher barrels of oil lifted and a higher average realised oil price.

However, its drilling segment saw revenue sink 45.4% lower to RM251.2mil on a year-on-year basis due to certain rigs being off contract during the quarter.  The segment incurred a loss of RM93.1mil as compared to a profit before taxation of RM34mil in the previous third quarter.

Revenue in the E&C segment was halved to RM1.57mil in line with lower activities during the current quarter. The segment recorded a loss before taxation of RM29.3mil compared to a profit before taxation of RM274.1mil in the year-ago quarter.

Year-to-date, Sapura Energy has made a net loss of RM217.94mil compared to net earnings of RM380.64mil in the first three quarters of 2016, while revenue has dropped to RM4.7bil from RM5.84bil.

Loss per share for the cumulative period stood at 3.66 sen versus earnings of 6.4 sen a share previously.

At 3pm, the counter was trading at 16 sen or 13.22% lower at RM1.05 a share with 34.74 million shares exchanging hands.

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