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Sapura Energy still damp despite RM905m new jobs
Khairul Khalid | 09 Feb 2018 00:30
The company is exploring the option of floating its exploration and production unit – Bloomberg

Sapura Energy Bhd’s latest contract wins worth RM905 mil should have brought much-needed cheer to shareholders, but instead turned out to be a damp squib judging from its sluggish share price.

It looks like investors still need some convincing as sentiments on the company are further weighed down by concerns over the impact of Petroleo Brasileiro SA’s (Petrobras) legal suit on Sapura Energy’s business in Brazil. In addition, depleting cash pile and high gearing are still a drag on the company.

A local analyst says although Sapura Energy has bagged projects worth about RM2.4 bil the past three months, the volatile markets have somewhat affected its share price. 

Although the company’s share price spiked briefly this year along with the price rally, it has plunged 62% year-on-year, down from RM1.84 on Feb 9 last year to 70 sen on Feb 8 this year.