KUALA LUMPUR (Dec 7): Sapura Energy Bhd, whose shares plunged to a record low of RM1.06 today, fell into the red after posting a net loss of RM274.41 million in its third quarter ended Oct 31, 2017 (3QFY18), compared with a net profit of RM158.06 million a year ago.
The group, formerly known as SapuraKencana Petroleum Bhd, recorded a loss before tax of RM209.7 million, which was RM409 million lower compared with the profit before taxation of RM199.3 million it had booked a year ago, in line with lower revenue from engineering, construction and drilling business segments.
The net loss was also a result of lower contribution from its share of profit from joint ventures, due to the share of loss on the disposal of vessel from SapuraAcergy Sdn Bhd, which amounted to RM46.1 million.
Quarterly revenue fell 42% year-on-year to RM1.28 billion from RM2.22 billion, Sapura Energy told Bursa Malaysia in a filing today.
For the cumulative first nine months of FY18 (9MFY18), the group recorded a net loss of RM217.95 million compared to a net profit of RM380.64 million last year, while revenue fell 19% to RM4.71 billion from RM5.84 billion in 9MFY17.
Moving forward, Sapura Energy said industry condition continues to be challenging and the group’s current performance is a reflection of the prolonged low levels of capital spending within the industry.
With the recent increase in tendering and bidding activities across key geographies, Sapura Energy said it will continue to focus on replenishing the orderbook by strengthening its position in existing markets and expanding into new markets.
“In the exploration and production segment, the group has successfully completed its first gas development project, the SK310 B15 field, which will contribute to the revenue going forward,” it added.
The board expects the challenging environment to persist in the short and medium term but it is currently considering various strategic and operational plans to mitigate the impact and improve the group’s competitive position.
At 3.16pm, SEB shares was down 15 sen or 12.4% at RM1.06 after 43.73 million shares were done, giving it a market capitalisation of RM7.07 billion.
At the time of writing, the stock was the most actively-traded counter as well as the top losing counter.