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KUALA LUMPUR (June 29): Sapura Energy Bhd returned to the black in the first quarter ended April 30, 2020 (1QFY21) with a net profit of RM14.21 million or 0.09 sen per share, after four consecutive quarters of losses.

The oil and gas (O&G) firm had reported a net loss of RM109.1 million, or loss per share of 0.68 sen, in 1QFY20.

The last time the group had posted a quarterly profit was in 4QFY19, when it reported a net profit of RM500.43 million.

In its filing to Bursa Malaysia today, Sapura Energy said finance costs in 1QFY21 dropped to RM138.75 million, from RM214.38 million a year earlier.

The group’s net profit was achieved despite its revenue falling 16.89% to RM1.36 billion, from RM1.63 billion in 1QFY20.

Sapura Energy said the lower revenue was due to lower revenue received from its engineering and construction segment, following a drop in activities.

In a separate statement, the group said the latest quarterly numbers are an indication of the group's early progress of its plans to reach profitability.

“The group leveraged on its capabilities and strategic assets to expand globally, sustaining revenue growth and maintaining resilience.

“In mid FY20, Sapura Energy began executing a comprehensive plan to ensure lean and efficient operations, which resulted in enhanced productivity for the group,” it said.

As far as its orderbook is concerned, Sapura Energy has RM14 billion locked in — with RM800 million 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,” it added.

Shares in Sapura Energy finished 5.26% or half a sen lower at nine sen today, giving the group a market capitalisation of RM1.44 billion. The counter saw 79.8 million shares traded.

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