SAPURA Energy Bhd today recorded revenue of RM6.4 bil in its unaudited full-year results for the financial year ended Jan 31, 2020, up from RM4.6 bil for the previous financial year.
The company said revenue gains were recorded on the back of increased project execution in its engineering and construction segment.
“Segment revenue for engineering and construction was RM5.5 bil in FY2020.
“The business unit saw a significant increase in EPCIC works globally, including commencing construction on two major Central Processing Platforms (CPP) for Mubadala Petroleum’s Pegaga field in Sarawak, Malaysia and the 98/2 project by Oil and Natural Gas Corporation (ONGC) India,” it said in a filing with Bursa Malaysia today.
It said the drilling unit recorded a revenue of RM941 mil for FY20, marginally higher compared with FY19.
Meanwhile, its upstream exploration and production business, operated through SapuraOMV, marked a significant milestone in FY20 when it achieved first gas following the start-up of the Larak gas field under the SK408 Production Sharing Contract.
President and group CEO Tan Sri Shahril Shamsuddin said the revenue growth was a result of the efforts to strengthen core markets in Asia, while further expanding into the 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 EPCIC projects,” he said.
However, it said on the back of this turnover, the group recorded a loss after tax of RM4.56 bil.
As a prudent measure, the group has decided to recognise a RM3.3 bil provision for impairment on goodwill and property, plant and equipment.
In addition, the group said a provision of RM439 mil was recognised in anticipation of extended delays towards completion of current projects arising from the Covid-19 pandemic and taking into consideration current market conditions.
The group’s current order book stands at RM13.5 bil, it said.
Meanwhile, Shahril said the company remains cautiously optimistic about its outlook for FY21, as the oil and gas industry braces for the full impact of Covid-19 and low oil prices, and expects the challenging environment to remain in the short to medium term.
“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,” he added. — April 29, 2020, Bernama
