Sapura Energy Berhad (formerly known as SapuraKencana Petroleum Berhad, “Sapura Energy” or “Group”) reported Profit after tax of RM206 million in financial year ended 31 January 2017 (“FY2017”). The Group’s coordinated effort towards market expansion and cost reduction has resulted in RM 7.7 billion in revenue and PBT margins before impairment of 8.7%.
The industry environment remains challenging with increased competition in the Services segment due to the widespread cuts in capital expenditure. The Group has been competitive in securing new work worth RM6.3 billion for FY2017. Notable wins for the Group include the Trans Anatolian Gas Pipeline in Turkey, EPCIC of B-127 Project in India, KMZ sour gas pipeline in Mexico, long-term Plug and Abandonment contract in Brunei, and decommissioning work in Malaysia, Brunei and Australia.
In Exploration and Production (“E&P”), we have made significant progress in commercialising our gas fields. The B15 SK310 development is on track for first gas by third quarter this year. The additional gas discoveries for SK408 offshore Sarawak enhances our position as an Asian-based independent and we continue to leverage our in-house expertise to identify new opportunities to add further to the Group’s portfolio of resources and reserves.
The Group believes that oil price will remain volatile in the medium term driven by fundamental supply and demand dynamics. The rebalancing of these factors is expected to trigger return of investment appetite for offshore development projects, but we believe the activity levels will remain subdued in the short term and competition will remain intense.
Leveraging the diversity of skills and talent that we possess, we believe Sapura Energy is well positioned to address a wider scope of the energy value chain globally. We will continue to pursue our strategies on global market expansion and cost optimisation, and setting the scene right as the industry finds its way back to recovery.