PETALING JAYA: Sapura Energy Bhd saw a wider net loss of RM100.9 million for the third quarter ended Oct 31, 2019, compared to RM31.1 million previously, reflecting the large volume of projects or activities that are in their early execution phases, involving mainly engineering and procurement, with lower project margins.
Revenue however, jumped 47.4% to RM1.8 billion, from RM1.2 billion, according to the group’s Bursa filing.
For the nine-month period, its net losses also widened to RM326.3 million, from RM292.9 million. Revenue was 73.1% higher at RM5.3 billion versus RM3.1 billion a year before.
On a segmental basis, the engineering & construction (E&C) business recorded a profit before tax of RM91 million, which was higher by 64% compared to RM56 million in the corresponding period.
The drilling segment posted a slightly lower loss before tax of RM135 million, compared to RM139 million in the corresponding period.
“Our performance in the first nine months reflected our resilience to sustain our businesses amidst prevailing market conditions. We will continue to focus on turning the corner as we further enhance operational performance, and identify and pursue opportunities globally,” said president and group CEO Tan Sri Shahril Shamsuddin in a statement.
However, the group expects the industry outlook to remain challenging.
Meanwhile, in a separate filing, Sapura Energy said it has secured several new contracts for its E&C and drilling segments.
“The contracts, valued at approximately RM615 million, brings the total order book year-to-date to RM15.1 billion, which will increase work volume and utilisation of assets,” it said.
Sapura Fabrication Sdn Bhd has won a contract from Hess Exploration And Production Malaysia BV under the Petronas Frame Agreement, for the provision of engineering, procurement, construction, commissioning plus installation for full field development Phase 3 Facilities in the North Malay Basin, offshore Peninsular Malaysia.
The group will also be undertaking its first deep-water project in Area 4, Rovuma Basin, offshore Mozambique following a contract award from Mozambique Rovuma Venture SpA for the provision of a subsea installation vessel for transportation and installation of Christmas Trees.
In Brazil, Petróleo Brasileiro SA (Petrobras) has awarded Sapura Navegação Marítima SA a contract extension to charter and operate Sapura Topazio, a dynamic positioning (DP) 2 self-propelled pipelaying vessel.
Meanwhile, for the group’s drilling segment, Sapura Drilling Asia Sdn Bhd, has been awarded a contract extension for the provision of its semi-submersible tender assist drilling rig, Sapura Esperanza, by Sarawak Shell Berhad / Sabah Shell Petroleum Company Limited.
The contract will see work commencing in Q3FY21.
