Sapura Energy expects to remain profitable despite oil market uncertainties

  • Energy
  • Friday, 18 Sep 2020

KUALA LUMPUR: Sapura Energy Bhd posted its second straight quarterly net profit on improved operating metrics from its Engineering & Construction (E&C) division.

The company expects the operating environment to remain challenging, but said it is capable of withstanding the current uncertainties and expects the Group to remain profitable.

Net profit for the three months ended July 31 was RM23.7mil on revenue of RM1.22bil.

“We have identified cost optimisation initiatives valued at about RM1.1bil being executed over the next 12 months,” said Sapura Energy President and Group CEO Tan Sri Shahril Shamsuddin said in a statement today.

“Approximately RM450 million worth of initiatives have been fully implemented to date, including operations productivity improvement and capex optimisation, a group-wide salary reduction exercise, and an extensive review of commercial opportunities within existing contracts," he added.

The Group’s current orderbook stands at RM13.3bil, with RM1.6bil in cumulative new contract wins for the year to-date.

Sapura Energy’s current bid book has grown by 25% compared to Q1 FY2021, with tenders valued at RM29.4bil submitted and in progress.

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