Sapura Energy confirms mulling E&P arm listing

PETALING JAYA: Sapura Energy Bhd has engaged advisors to evaluate and advise on the potential listing of the group's exploration and production (E&P) business.
Sapura said it will make the necessary announcement in compliance with Bursa Malaysia Securities Main Market listing requirements should there be any material development on this matter.
According to Sapura's third-quarter financial report ended October 31, 2017, E&P was the only profitable segment in the group with an operating profit of RM8.67 million, while engineering & construction and drilling reported operating losses of RM29.32 million and RM93.14 million, respectively.
During the period, Sapura group fell into the red registering a net loss of RM274.41 million, with nine-month net loss standing at RM217.95 million.
Its E&P segment has participating Interest in nine production sharing contracts as well as operatorship in six production sharing contracts.
Sapura noted in its 2017 annual report that its E&P business achieved significant capital expenditure reduction for its SK310 B15 development and production enhancement infill drilling campaigns in producing fields.
"We remain confident of our in-house capabilities to economically deliver on future gas development plans for SK408 that will provide long-term visibility to the group’s revenue profile," it said.
Shares of Sapura Energy rose 2 sen or 2.5% to close at 81 sen. It was the second most active counter, with some 136.01 million shares traded.