Friday 29 Mar 2024
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KUALA LUMPUR (April 30): Sapura Energy Bhd, which yesterday reported a widened net loss from continuing operations of RM4.23 billion in the fourth quarter, was among the most actively traded counter on Bursa Malaysia this morning.

The counter had risen 12.5% earlier today, before paring some of its gains and was up half a sen or 6.25% at 8.5 sen at 10.20am. Some 42.98 million shares were traded, making it the third most actively traded counter on Bursa at the time of writing. Its market capitalisation stood at RM1.28 billion.

Over the past year, the stock plunged some 73% from 33.5 sen.

In a filing to the bourse yesterday, Sapura Energy said net loss from continuing operations for the fourth quarter ended Jan 31, 2020 (4QFY20) widened to RM4.23 billion from RM2.23 billion a year earlier, as revenue fell and the oil and gas (O&G) support services firm made asset impairment provisions.

Quarterly revenue also fell to RM1.11 billion from RM1.49 billion in 4QFY19, mainly due to lower revenue from its engineering and construction segment.

Like its international O&G peers, such as McDermott and TechnipFMC, Sapura Energy has booked in sizeable impairment.

"In the current quarter, the group has made a provision for impairment on goodwill on consolidation of RM3.04 billion (4QFY19: RM108.4 million) and a provision for impairment on property, plant and equipment of RM240.9 million (4QFY19: RM1.41 billion).

"The impairments were necessary due to the prolonged recovery expected in the industry. An additional provision of RM438.8 million was recognised in anticipation of delays and prolonged durations to current projects arising from restricted movement and lockdown measures in multiple jurisdictions brought about by the Covid-19 global pandemic, as well as taking into consideration current market conditions,” Sapura Energy said.

For the full year of FY20, its net loss from continuing operations widened to RM4.56 billion from RM2.71 billion a year earlier, despite a higher revenue of RM6.45 billion versus RM4.57 billion.

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