KUALA LUMPUR (June 29): Sapura Energy Bhd recorded its third consecutive quarter in the red today, after the group announced a net loss of RM135.73 million in the three months ended April 30, 2018 (1QFY19), mainly as its drilling business incurred losses as it experienced slower-than-anticipated recovery.

In contrast, Sapura recorded a net profit of RM27.53 million in the same quarter last year. 

While its engineering and construction (E&C) and exploration and production (E&P) segments made positive contributions to the latest quarterly results, both their profits before tax (PBT) were down significantly. E&C's PBT was down 80% year-on-year to RM36.5 million, while E&P's were down 63% y-o-y to RM9 million. 

Drilling recorded a loss before tax of RM68.7 million, compared with a PBT of RM20.8 million a year ago, the group's stock exchange filing today showed. 

Revenue shrank 40% year-on-year to RM1.05 billion from RM1.77 billion, as drilling and E&C's contributions fell.

Nevertheless, Sapura is positive about the oil and gas industry's outlook, as it is seen to be gradually recovering from the low level of activities experienced in the last three years, leading to an increase in projects being sanctioned. 

The recovery can be observed by the significant increase in new orders and the recent contract wins that have brought the group’s total new wins to-date to RM4.5 billion, the filing added. 

Fuelled by continued positive industry outlook, Sapura president and group chief executive officer Tan Sri Datuk Seri Shahril Shamsuddin said in a statement that the company's growth strategy is on track. 

"Our bid book will continue to remain healthy as we continue to compete in bidding opportunities, in an effort to boost our order book," Shahril said. 

"Staying competitive and resilient have been central to our success. We expect to sustain our growth momentum with the same rigour and discipline that will propel the group to turn the corner and build a sustainable long-term future," Shahril added. 

At this point, the group’s order book has increased to RM16.7 billion after having secured contracts across Australia, Malaysia, India, Brazil and Mexico, since the start of the financial year. 

"The revenue from the newly-secured contracts is expected to be recognised in the current financial year and beyond," Sapura added. 
  
Its shares closed 1 sen or 1.54% lower today at 64 sen, giving it a market capitalisation of RM3.84 billion.