PETALING JAYA: Sapura Energy Bhd posted a net loss of RM4.23 billion for the fourth quarter ended Jan 31, 2020 compared with a net profit of RM500.43 million a year ago after making a RM3.3 billion provision for impairment on goodwill and property, plant and equipment.
The group said the impairments were necessary due to the prolonged recovery expected in the oil and gas industry. In addition, a provision of RM439 million was recognised in anticipation of extended delays towards completion of current projects arising from the Covid-19 global pandemic and taking into consideration current market conditions.
Its revenue fell 25.1% to RM1.11 billion from RM1.49 billion in the corresponding quarter of the preceding year, mainly attributable to the lower revenue from engineering and construction (E&C) business segment.
For the full year period, Sapura Energy suffered a net loss of RM4.56 billion compared with a net profit of RM207.55 million a year ago after making the RM3.3 billion provision for impairment on goodwill and property, plant and equipment.
Its revenue jumped 41.2% to RM6.45 billion RM4.57 billion, primarily due to the higher revenue from E&C business segment.
Sapura Energy president and group CEO Tan Sri Shahril Shamsuddin said the revenue growth is a result of its efforts to strengthen core markets in Asia, while further expanding into Middle East, Africa and the Americas.
“Ownership of strategic assets provided sustainable competitive advantage for the company, especially as we diversified revenue streams through renewables, decommissioning, marine terminal, and large volume engineering, procurement, construction, installation & commissioning projects,” he said in a statement.
The group’s current orderbook stands at RM13.5 billion.
The group remains cautiously optimistic in its outlook for FY21, as the oil and gas industry braces for the full impact of Covid-19 and low oil prices. The board of directors anticipates the challenging environment to remain in the short to medium term.
“Having weathered the previous downturn, we have in place an agile strategy designed for the cyclical nature of the industry.
“Sapura Energy has also been implementing key initiatives since mid-2019 to optimise cost and improve operational efficiencies, which will be a crucial leverage as we manage uncertainties in FY21,” said Shahril.
As part of the group’s planned capital management program, a refinancing exercise is underway and is on track to be completed this year.
“The refinancing exercise will enhance the group’s financial position. A stronger and leaner company will ensure we remain competitive in this current environment, and position ourselves well to capture opportunities when the market recovers.”
source https://www.thesundaily.my/business/sapura-energy-sees-rm423b-net-loss-in-q4-DM2349005
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