KUALA LUMPUR (Jan 25): Integrated oil and gas (O&G) player Sapura Energy Bhd said it has engaged advisors to evaluate and advise on the potential listing of its exploration and production (E&P) business.

In a filing with the stock exchange, Sapura Energy said recent articles published by the local media had alluded to the listing of the company’s E&P business which would, among others, provide an avenue for the company to monetise its assets.

“The company will make the necessary announcement in compliance with Bursa Malaysia Securities Bhd’s Main Market listing requirements, should there be any material development on this matter,” the company said.

Citing sources, a local daily said the recent recovery in the crude oil prices has led Sapura Energy mulling the listing of its E&P arm as a way to monetise part of its assets.

“Of these divisions, E&P is the better-performing segment of its business that has been hard hit by the downturn in the O&G industry that started from mid-2014 until the third quarter of last year,” Sapura Energy added.

Sapura Energy 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.

Quarterly revenue fell 42% year-on-year to RM1.28 billion from RM2.22 billion.

For the cumulative first nine months of FY18 (9MFY18), the group recorded a net loss of RM217.95 million compared with a net profit of RM380.64 million last year, while revenue fell 19% to RM4.71 billion from RM5.84 billion in 9MFY17.

At midday break, Sapura Energy rose two sen or 2.53% to 81 sen with 94.55 million share traded for a market capitalisation of RM4.79 billion.