Sapura Energy 2Q net loss narrows to RM116m

Sapura Energy 2Q net loss narrows to RM116m
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KUALA LUMPUR (Sept 27): Sapura Energy Bhd's net loss for the second quarter ended July 31, 2019 narrowed to RM116.31 million from RM126.06 million in the year-ago quarter, on the back of a 87% jump in revenue to RM1.93 billion versus RM1.03 billion.

Loss per share declined to 0.73 sen from 3.35 sen previously, according to its bourse filing.

For the six months ended July 31, Sapura Energy's net loss narrowed to RM225.41 million from RM261.79 million in the same period last year. Revenue rose to RM3.56 billion against RM1.88 billion a year earlier.

In a separate statement, Sapura Energy president and group chief executive officer Tan Sri Shahril Shamsuddin said the group's top line growth has been encouraging.

"We are ramping up our operations to execute new contracts and serve new markets as well as new customers.

"This growth momentum is expected to improve our bottom line as we gradually progress the projects to the next stages," he said.

Shahril said Sapura Energy's order book remained healthy for the quarter at RM16.3 billion, with the value of cumulative contract wins year-to-date at approximately RM3.1 billion.

He said the group foresees the oil and gas industry's operating environment to remain challenging and competitive.

However, he said the group remains upbeat, backed by a robust bid book funnel as an outcome of its expanded global footprint, strategic assets and in-house capabilities.

"As an integrated oil and gas services and solutions provider for the entire upstream value chain, we are excited to see the fruits of our diversified portfolio as an additional income stream through our SK408 gas fields.

"This marks the beginning of a 20-year cashflow visibility in view of the rich gas reserves in our PSC (production sharing contract) concessions," he said.

At the midday break, Sapura Energy shares were 1.75% or 0.5 sen higher at 29 sen for a market capitalisation of RM4.63 billion.