KUALA LUMPUR (Sept 23): Bursa Securities has rejected Sapura Energy Bhd’s application for a one-month extension to announce its latest quarterly results.
“The company wishes to inform that the application was unsuccessful via a letter dated Sept 22, 2021 issued by Bursa Securities to the company,” it said in a filing today.
The oil and gas (O&G) outfit submitted its application on Sept 14 for the one-month extension until Oct 30.
The group is required to file its results for the quarter ended July 31, 2021 (2QFY22) by Sept 30, 2021.
Sources close to Sapura Energy said it wanted time as "there were adjusting events related with its projects", which the group needed to analyse.
Sapura Energy, which has ventured into installation of offshore wind turbines, remained in the red for the second consecutive quarter in 1QFY22, with a net loss of RM97.07 million. The group attributed this to the one-time impact of its refinancing exercise as well as unfavourable foreign exchange changes. It booked RM1.47 billion in revenue, up from RM1.44 billion for the preceding quarter.
Analysts' consensus estimate of Sapura Energy’s FY22 earnings stood at a net loss of RM66.58 million, Bloomberg data showed.
PublicInvest Research in a July note projected Sapura Energy’s FY22 loss at RM286.7 million even after taking into account its recent wins worth RM1.2 billion in drilling contracts and engineering and construction works.
“Efficiency of project execution and profit margins remain a question, given the volatile operating environment, especially for its engineering and construction segment,” the research house said despite the RM13 billion order book secured.
Hong Leong Investment Bank (HLIB) Research, which expects Sapura Energy to post a core net profit of RM97.6 million for FY22, pointed to improved operational efficiencies with operating expenses down 32% year-on-year to help it capitalise on the contract wins.
“We believe Sapura Energy will be in the black from FY22 after being in the red for four consecutive years,” it said.
From 13 sen prior to its submission for the one-month extension on Sept 14, shares in Sapura Energy had retreated 1.5 sen or 11.54% to 11.5 sen at the close today, valuing the group at RM1.86 billion.