KUALA LUMPUR (Sept 27): Sapura Energy Bhd reported a 74% drop in second quarter net profit at RM28.93 million from a year earlier, as the oil and gas support service provider registered less income from its exploration and production, besides rig operations segments.

Sapura Energy was formerly known as SapuraKencana Petroleum Bhd. Sapura Energy told Bursa Malaysia today that net profit fell to RM28.93 million in the second quarter ended July 31, 2017 (2QFY18), from RM112.27 million. 

Revenue was lower at RM1.66 billion versus RM1.68 billion, according to Sapura Energy, which undertakes its rig operations via its drilling segment.

"The group revenue of RM1,656.2 million was 1.1% lower than RM1,675.3 million in the corresponding quarter of the preceding year, mainly attributable to the lower revenue from drilling and exploration and production business segments. 

"The group recorded profit before taxation of RM33.8 million, a decrease of RM152.9 million as compared to RM186.7 million in Q2 FY2017, due to the lower revenue from drilling business segment and the financial impact arising from the cessation of the Berantai risk service contract in Q2 FY2017," Sapura Energy said.

Sapura Energy said 1HFY18 net profit fell to RM56.46 million, from RM222.58 million a year earlier, while revenue was lower at RM3.43 billion, versus RM3.62 billion.

Looking ahead, Sapura Energy said the oil and gas industry continues to be challenging in the current financial year. "Whilst oil prices have stabilised, the group remains cautious on the outlook of recovery in the industry's capital spending in the near term," the company said.
 
At Bursa Malaysia today, Sapura Energy shares settled at RM1.72 at 12:30pm for a market value of RM10.31 billion. The stock saw 3.65 million shares traded.