Clear earnings visibility for Sapura Energy


Sapura Energy’s group CEO Datuk Mohd Anuar Taib (pic) said on Tuesday that the company was now “on firm footing” for sustainable growth, looking beyond its existing market to embrace the energy transition.”

PETALING JAYA: Sapura Energy Bhd’s outlook seems to have improved if its growing orderbook is anything to go by.

The oil and gas-related company’s orderbook currently stands at RM13.7bil and moving forward, RM6.9bil of the orderbook will be booked in FY22 and another RM6.8bil in FY23 and beyond, JF Apex Research said.

Notably, at RM13.7bil, the group has secured about 80% of its revenue for FY22.

Going forward, Sapura has submitted bids for RM31.5bil worth of jobs worldwide including renewable energy projects, the research house pointed out to clients.

“We are raising our profit and revenue estimates for FY22 by 15% and 16% respectively in view of its resilient ability to replenish its orderbook and an improved oil price, ” it said in a report.

In the same report, JF Apex also pointed out that Sapura Energy’s net debt to equity had inched up to 1.1 times from 1.06 times in 3QFY2021 as cash reserves declined to RM489mil versus RM500mil in 3QFY21.

For now, it is keeping its recommendation at a “buy” with an unchanged target price of 17 sen for the Sapura Energy stock, based on a three-year mean price to book and a net tangible assets (NTA) of 60 sen per share.

At last look, the stock was at 13 sen.

Sapura Energy on Tuesday said it made a net loss of RM216mil in the last quarter ended Jan 31, its second straight loss.

To be sure, Sapura Energy enjoyed three profitable quarters in FY21, but fell into the red in the fourth due to softer project margins in its engineering and construction (E&C) business segment.

“During the quarter, the E&C segment sustained additional costs brought about by Covid-19 and by working through the monsoon season, ” it said.

For FY21, the group recorded a loss-after-tax of RM160mil compared with a RM4.6bil loss-after tax posted in the previous fiscal year.

Its board said it remained confident that the turnaround trends seen in the third and fourth quarter of FY2021 would lead to better performance in FY2022.

On Tuesday, the company also announced that it had obtained RM1bil worth of fresh contracts, which included an 18-month contract to supply and maintain the point of sales systems at Petronas petrol pumps.

Sapura Energy’s group CEO Datuk Mohd Anuar Taib said on Tuesday that the company was now “on firm footing” for sustainable growth, looking beyond its existing market to embrace the energy transition.”

Based on the company’s current stock price of 13 sen per share, the whole group is valued at some RM2bil.

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