Thursday 28 Mar 2024
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KUALA LUMPUR (June 29): Sapura Energy Bhd said it posted a net loss of RM97.07 million for the first quarter ended April 30, 2021 (1QFY22), compared with a net profit of RM14.21 million a year earlier, dragged by the unfavourable effect of the US dollar exchange rate against the ringgit and lower share of profit from associates and joint ventures.  

Revenue, however, rose 8.4% to RM1.47 billion, from RM1.36 billion in 1QFY21, underpinned by higher revenue from the engineering and construction (E&C) and drilling business segments in line with the progress of projects being executed and higher average day rates, the group said in a filing to Bursa Malaysia.

On a quarter-on-quarter basis, the group’s net loss narrowed from RM216.03 million in 4QFY21, mainly due to higher project margin from the E&C business segment and improved margins from operating rigs from the drilling business segment.

Revenue, meanwhile, grew 1.87% from RM1.44 billion in 4QFY21, primarily due to higher revenue from the drilling business segment.

Sapura Energy chief executive officer Datuk Mohd Anuar Taib said the group has secured about 95% of its targeted revenue for FY22, and he is confident that the group will exceed the revenue posted in financial year 2021.

“We are well-positioned to capitalise on the recovering energy industry, given the expected rebound in oil and gas demand. At the same time, we will continue to deepen our presence in the renewables sector to ensure we remain sustainable in the future,” he said.

According to him, the group’s orderbook stood at RM11.8 billion at the end of 1QFY22.

Its total bids and prospects are currently valued at RM147 billion, with RM51 billion worth of tenders already submitted or in progress. These include six active bids in the renewables sector, across Asia Pacific.

However, Mohd Anuar said the group’s optimism is tempered by uneven recovery in the world economy, as many countries are still grappling with Covid-19.

“Sapura Energy will continue to focus on managing the pandemic’s impacts on its operations,” he said.

He noted that at the end of 1QFY22, the group has accumulated pandemic related costs amounting to RM328 million and is currently engaging with its clients to acknowledge and resolve these costs for recovery.

“The group is cautiously optimistic that it is well positioned to deliver resilient performance in FY2022, while remaining on track to deliver on its longer-term strategic intents in embracing energy transition,” he said.

Sapura Energy’s share price closed unchanged at 13 sen today, valuing the group at RM2.08 billion.

Edited ByS Kanagaraju
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