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KUALA LUMPUR (September 18): Sapura Energy Bhd posted a net profit of RM 23.7 million for the second financial quarter ended July 31, 2020 (2QFY21), an increase of 67% from RM 14.21 million. ringgit for the immediately preceding quarter.
Quarterly revenue, however, was less than RM1.22 billion compared to RM1.35 billion in 1TFY21.
This is the second consecutive quarter of net income for the oil and gas group (O&G), thanks to improved operating metrics from its engineering and construction (E&C) division.
In contrast, Sapura Energy posted a net loss of RM116.3 million a year ago on revenues of RM1.93 billion.
In a statement today, the group said the results demonstrated the group’s steadfast commitment to shifting its operations and resilience to navigate the impact of the ongoing slowdown in the O&G industry.
It noted that the government’s Motion Control Order had curtailed the activities of Sapura Energy’s drilling and E&C divisions, affecting the group’s revenue during the quarter.
During the first six months ending July 31, it reported a cumulative net profit of RM37.95 million versus a net loss of RM225.41 million, based on revenue of RM2.58 billion versus RM3.56 thousand. million a year ago.
Sapura Energy said its fundamental strength to withstand the cyclical nature of the industry helped the group remain nimble under difficult operating conditions.
“We have identified cost optimization initiatives valued at approximately RM1.1 billion to be executed over the next 12 months.
“Approximately RM450 million in initiatives have been fully implemented to date, including [operational] productivity improvement and capex optimization, a group-wide salary reduction exercise and a comprehensive review of business opportunities within existing contracts, “said Sapura Energy Group President and CEO Tan Sri Shahril Shamsuddin.
The group’s order book currently stands at RM13.3 billion, with RM1.6 billion accumulated to date in new contracts won.
He added that despite some delay in project sanctions from potential customers, Sapura Energy’s current bid book has grown 25% compared to 1TFY21, with bids valued at RM29.4 billion submitted and in progress.
He said the group will continue to focus on safe and efficient operations in all its business segments, meet its cost optimization objectives and improve financial strength; and be well positioned to capture opportunities as the market recovers.
Sapura Energy shares closed 0.5 sen or 4.17% lower at 11.5 sen, for a market capitalization of RM1.76 billion.
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