Sapura Energy still struggling with lower output, idle rigs

Net profit however plunged to MYR29.4m from MYR111.6m previously as all the segments besides the Engineering and Construction (E&C) segment had lower revenue and either turned in losses or lower profits.

Sapura Energy said in a stock market announcement the E&C segment saw revenue rise by just over half to MYR1.26bn on higher activities and segment pre-tax profit rose 6% to MYR120.1m on a higher share of profits from associates and joint ventures.

The drilling segment however saw turnover plunge 48% to MYR278.6m on lower revenue from off-hire rigs and this resulted in a segment loss of MYR85m

Meanwhile the cessation of the Berantai RSC and resultant lower liftings saw revenue for the E&P segment fall by almost half to MYR162m and segment profit plunge 58% to MYR22.4m.

Looking ahead the group said: "Industry conditions continue to be challenging in the current financial year. Whilst oil prices have stabilised, the group remains cautious on the outlook of recovery in the industry's capital spending in the near term."

Sapura Energy added that the group has seen an increase in tendering and bidding activities across key geographies in recent months. "To enhance its competitiveness in replenishing the orderbook, the group is focused on strengthening its position in existing markets and expanding into new markets, re-basing costs and improving operational efficiency," it concluded.

Sapura Energy president group ceo Shahril Shamsuddin said: "The group continues to exhibit resilience and effectiveness in executing projects globally despite the challenging industry conditions. We remain committed to expanding our footprint into new geographies and enhancing our service offerings to suit client needs."

"In our E&P operations, we are on track to achieve first gas production from the SK310 B15 field in the third quarter of this financial year. Alongside the group’s future gas development plans for SK408, these milestones will provide long-term financial visibility for the group,” he concluded.

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