PETALING JAYA: Sapura Energy Bhd fell into the red in the third quarter ended October 31, 2017 registering a net loss of RM274.41 million against a net profit of RM158.06 million a year ago, due to lower contribution from the engineering and construction and drilling segments as well as lower share of profit from joint ventures.
The lower contribution from joint ventures was due to the share of loss incurred from the disposal of vessel by Sapura Acergy amounting to RM46.1 million.
Its revenue slumped 42.4% to RM1.28 billion from RM2.22 billion a year ago.
Sapura Energy said in a Bursa Malaysia filing that the group’s current performance is a reflection of the prolonged low levels of capital spending within the industry.
The board, which anticipates the challenging environment to persist in the short and medium term, said with the recent increase in tendering and bidding activities across key geographic regions, will enable Sapura Energy to replenish its order book, strengthen its existing market and expand into new markets.
“In the exploration and production segment, the Group has successfully completed its first gas development project, the SK310 B15 field, which will contribute to the group’s revenue going forward,” it noted.
On top of that, the group is also considering various strategic and operational plans to mitigate the impact and improve the competitive position of the group.
Sapura Energy remained in the red for the cumulative period of nine months, with a net loss of RM217.95 million against a net profit of RM380.64 million in the previous financial year. Revenue, on the other hand, fell 19.4% from RM5.84 billion to RM4.71 billion.
At the noon break, Sapura Energy’s shares were down by 2.48% to RM1.18 with some 9.46 million shares done.
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