Sapura Energy bags contracts worth RM1.47b
Date: 16.11.2017.

Publication Source: The Edge Markets

Sapura Energy Bhd has bagged five contracts worth a combined RM1.47 billion.

They include work in relation to the Pan Malaysia Transportation and Installation of Offshore Facilities for Petronas Carigali Sdn Bhd and Sarawak Shell Bhd, via Sapura Offshore Sdn Bhd.

"The work comprises transportation and installation of offshore facilities including platform, structures and pipelines and its associated works (and) will be executed throughout 2018," said Sapura Energy in a filing with Bursa Malaysia today.

Sapura Fabrication Sdn Bhd and its partner Borneo Seaoffshore Engineering Sdn Bhd were also awarded a contract to undertake the provision of maintenance, construction and modification services under Package A (Offshore) — Sarawak Gas for Petronas Carigali. The contract is a call-out contract where works will be carried out according to work orders issued by Petronas Carigali.

"The duration of the contract will be for a primary period of five years expiring in September 2022 with one year extension option," said Sapura Energy.

Sapura Fabrication also bagged a contract to undertake the provision of hook-up, commissioning and offshore construction services by Repsol Oil & Gas Malaysia Ltd.

The contract duration is for a primary period of two years expiring in September 2019 with one year extension option, said Sapura Energy.

Another contract bagged by Sapura Fabrication is to provide mechanical works for the flexi high density polyethylene plant for the Refinery and Petrochemical Integrated Development project — Unit 3215 in Johor by TecnimontHQC Sdn Bhd.

"The work consists of the provision of project management, supervision, equipment, tools and labour," said Sapura Energy, adding that the work is expected to be completed by March 2019.

In Brazil, Sapura Energy Do Brasil LTDA has won a contract to undertake engineering, procurement and construction related to pipeline for UTE Porto de Sergipe 1 combined cycle power plant, as well as transportation and installation of the offshore floating, regasification and storage unit's (FSRU) mooring system and hooking-up of the FSRU/riser/umbilical by Centrais Eletricas de Sergipe SA.

The work is expected to be completed by Dec 31, 2018.

Sapura Energy said these contracts are expected to contribute positively towards the group's earnings from the financial year ending Dec 31, 2018.

The stock closed down five sen or 3.45% to RM1.40 today, with 21.38 million shares done, bringing a market capitalisation of RM8.39 billion.