Kuala Lumpur, 29 June 2020
Summary of Q1 FY2021 financial results:
- PATAMI of RM14.2 million
- Revenue of RM1.4 billion
- Current cash and cash equivalents of RM0.7 billion
- Current orderbook of RM14.0 billion with cumulative new contract wins year-to-date of RM0.8 billion.
Sapura Energy Berhad (Sapura Energy) began financial year 2021 with a positive rebound, posting a profit-after-tax and minority interests of RM14.2 million for the first quarter ended 30 April 2020 (Q1 FY2021). The Group’s encouraging performance in the current quarter is primarily due to improvement in project margins.
The positive results are early progress in the Group’s plans to achieve profitability, as it remains firmly on track to turnaround the company.
The Group leveraged on its capabilities and strategic assets to expand globally, sustaining revenue growth and maintaining resilience. In mid FY 2020, Sapura Energy began executing a comprehensive plan to ensure lean and efficient operations, which resulted in enhanced productivity for the Group.
As part of the Group’s planned capital management program, a refinancing exercise is currently underway and is expected to be completed by the fourth quarter of this financial year.
The Group’s profit after tax and minority interests of RM14.2 million is higher compared to a loss after tax and minority interests of RM109.1 million in the corresponding quarter of the preceding financial year (Q1 FY2020).
The Group’s revenue in the current quarter rose 22.0% to RM1.4 billion, compared to the RM1.1 billion recorded in Q4 FY2020. This was mainly attributable to the higher revenue from the Engineering and Construction (“E&C”) business segment, which saw higher activities in line with the progress of projects being executed.
The Group’s orderbook stood at RM14.0 billion, with RM0.8 billion in cumulative new contract wins to-date. Recent notable awards include engineering, procurement, construction and installation (“EPCI”) contracts for the SBM Pipeline Rejuvenation Phase II Project in Bukom Refinery in Singapore by Shell Eastern Petroleum (Pte) Ltd, the PRP7 Pipeline Replacement Project by Brunei Shell Petroleum Co. Sdn Bhd and the EPCI for Additional Andalas Pipeline Project Phase 4 Development in The Malaysia-Thailand Joint Development Area by Carigali-PTTEPI Operating Company Sdn Bhd.
The Group anticipates the challenging environment to remain in the short to medium term. Sapura Energy is optimistic that it is capable of withstanding current uncertainties and is well-positioned to capture opportunities as the market recovers.
Cautionary note: “Sapura Energy”, “the group” and “the company” are used for convenience where references are made to Sapura Energy Berhad in general. Similarly, words like “we”, “us” and “our” are used to refer to Sapura Energy Berhad in general or to those who work for the company and its subsidiaries, where relevant. This press release may contain forward-looking statements. All statements other than statements of historical facts included in this press release, including, without limitation, those regarding our financial position, financial estimates, business strategies, prospects, plans and objectives for future operations, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such forwardlooking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which we will operate in the future. Such forward-looking statements reflect our current view with respect to future events and are not a guarantee of future performance. Forward-looking statements can be identified by the use of forward-looking terminology such as the words “may”, “will”, “would”, “could”, “believe”, “expect”, “anticipate”, “intend”, “estimate”, “aim”, “plan”, “forecast” or similar expressions and include all statements that are not historical facts.