Sapura Energy actively traded as oil prices hit five-month high on falling US crude stockpiles

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KUALA LUMPUR (Aug 6): Trading in Sapura Energy Bhd shares was active following the rise in oil prices to their highest since early March this year after US crude inventories fell sharply and the US dollar weakened.

At 10.46am, Sapura Energy remained at 10 sen, valuing the counter at RM1.6 billion. It saw 151.13 million shares traded.  

Brent crude inched back towards a five-month high touched overnight, rising 0.1% to US$45.23 per barrel and US crude was steady at US$42.15 per barrel.

Bloomberg reported today that US crude stockpiles fell by 7.37 million barrels for a second weekly decline through July 31, according to the Energy Information Administration.

It noted the median estimate in a Bloomberg survey had forecast a decrease of 3.35 million.

Meanwhile, Reuters had similarly predicted a draw of 3 million barrels.

“The 3-2-1 refining margin for combined gasoline and diesel against the West Texas Intermediate (WTI) — a rough profit gauge for processing a barrel of crude — held below US$10 a barrel for a third consecutive day on Thursday.

“The measure is at its lowest seasonal level in nearly a decade as the pandemic keeps Americans off the road during the normally busy summer driving season,” Bloomberg reported.

For its first financial quarter ended April this year, Sapura Energy posted a net profit of RM14.2 million versus RM1.36 billion in revenue, thanks to foreign exchange gains of RM33.91 million.

A year ago, it posted a net loss of RM109.1 million against RM1.63 billion in revenue.

The oil and gas giant had posted 10 straight unprofitable quarters, accumulating losses of RM4.46 billion.

Its long-term borrowings amounted to RM7.29 billion, compared to its cash equivalents of RM710.97 million as at April 30, translating to gearing of 1.5 times.

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Oil steady near five-month high with U.S. stockpiles shrinking