Sapura Energy records full year net loss of RM2.5b

Meanwhile, Sapura Offshore Sdn Bhd (SOSB) has secured a subcontract from Malaysia Marine and Heavy Engineering Sdn Bhd to transport and instal jackets, piles, bridges and appurtenances at the Bokor Central Processing Platform project. SOSB has also won a contract in India.

KUALA LUMPUR: Sapura Energy posted net losses of RM2.29bil in the fourth quarter ended Jan 31, 2018, as the company incurred impairment charges of RM2.1bil in its engineering and construction and drilling segments.

This brings full-year net losses to RM2.5bil as compared to a net profit of RM208.32mil in the previous financial year. 

Total revenue for the financial year was also lower at RM5.89bil as compared to RM7.65bil in the previous year.

"The Group assesses all aspects of its asset lifecycle periodically based on market changes and views impairment assessments as a healthy industry practice. 

"The impairment recorded, which has no impact on cash, creates a lighter asset base for the Group by reducing the total carrying value and depreciation charge of our drilling rigs going forward,” said Tan Sri Shahril Shamsuddin, President and group CEO of Sapura Energy in a press statement.

However, he added that the industry has seen seen a recovery from low levels of activity as reflected in the higher crude oil prices, resulting in increased levels of bidding and contracting activities for the group's services segment.

In the last two months, the Group has secured RM2.7 billion of new orders in the Services segment, resulting in a stronger orderbook position which would contribute to revenues for FY2019. 

 At 12.30pm, the counter was trading one sen or 1.83% lower at 53.5 sen a share on the back of 59.4 million shares traded.