KUALA LUMPUR(Dec 6): Sapura Energy Bhd’s net loss for its third quarter ended Oct 31, 2018 narrowed significantly to RM31.09 million from RM274.41 million a year ago, on higher revenue contribution.
Quarterly revenue grew 17.4% to RM1.5 billion from RM1.28 billion previously, the group said in a filing with Bursa Malaysia.
It attributed the increase in revenue to higher contribution from its engineering and construction (E&C), and exploration and production, business segments.
However, for the cumulative nine-month period ended Oct 31, 2018, Sapura Energy’s net loss widened to RM292.88 million from RM217.95 million in the previous corresponding period, as a result of lower revenue from its E&C and drilling business segments.
Loss per share for the period was higher at 4.92 sen from 3.66 sen a year ago.
Revenue, meanwhile, fell 18.9% to RM3.82 billion from RM4.71 billion in the previous nine months.
In a separate statement, Sapura Energy president and group chief executive officer Tan Sri Shahril Shamsuddin commented that the improved results indicated the group’s initial signs of a turnaround.
“We are seeing an upward trend in all segments, in particular the E&C business, driven by an increase in global investments and activities. As our orderbook grows, revenue will move up in tandem with project completion from commencement to book recognition,” he said.
In line with its strategy to penetrate into new markets and enhance its presence in key geographical locations, Sapura Energy said that it has been actively bidding for and executing higher value projects globally.
“The group’s total contract wins in the current financial year to date has reached RM8.5 billion, representing a three-fold increase compared to the corresponding period in the preceding year,” it said.
New contracts secured, including its most recent wins in Mexico, Malaysia and India, have resulted in the group’s orderbook growing to RM18.6 billion, thus providing long-term visibility and higher utilisation of the group’s assets which will progressively increase revenue.
The group recently marked a significant milestone as one of the latest pre-qualified contractors in Saudi Aramco’s Long-Term Agreement (LTA) programme.
This will enable Sapura Energy to participate in bids for engineering, procurement, fabrication, transportation and installation (EPCI) contracts by Saudi Aramco. The LTA programme will be for a period of six years with options for extensions.
“Having the potential to win new contracts and to be appointed to the LTA programme is a strong validation of our competitiveness and capabilities.
“Our success can be attributed to our people. As we aim to be one of the world’s most efficient and technically capable companies, we have continuously invested in the development of our expertise and skills from engineering to project management,” said Shahril.
At the closing bell, Sapura Energy shares were up 2 sen or 6% at 35.5 sen, for a market capitalisation of RM2.13 billion.