KUALA LUMPUR, March 26 — Most research firms are optimistic over Sapura Energy Bhd's shares as the company unveiled its turnaround prospects.

Maybank IB Research said financial results for the company's fourth quarter 2019 core profit came in below expectations, despite huge positive one-offs at the headline level.

"A special dividend, however, surprises. The focus should be on turnaround prospects, following the conclusion of its 50 per cent-owned energy business and rights issue,” it said in a note today.

Maybank IB Research made a "buy” call with a RM0.55 target price.

Meanwhile, Public Investment Bank Bhd said Sapura Energy had an improved outlook, but slower-than-expected recovery.

"The weak performance is mainly attributed to lower recognition from the engineering and construction (E&C) as well as drilling segments as a result of higher costs incurred. Most of the E&C projects are still in the initial procurement phase as well as low utilisation of assets,” it added.

Public Investment Bank Bhd made an "outperform” call with RM0.43 target price.

At 10.07am, Sapura Energy Bhd's shares were half-a-sen lower at 34 sen, with 40,199,000 shares traded. — Bernama