KUALA LUMPUR, June 30 — Sapura Energy Bhd shares were almost flat in early trade Wednesday, after posting a net loss of RM97.07 million in the first quarter (Q1) ended April 30, 2021 compared with a net profit of RM14.21 million in the same quarter a year ago.
At 11am, the counter was unchanged at 13 sen with 60.60 million shares transacted.
The integrated oil and gas services company said the negative performance was mainly to the unfavourable effect of the US dollar against the ringgit and lower share of profit from associates and joint-venttures.
Revenue however rose 8.4 per cent to RM1.47 billion during the quarter under review from RM1.36 billion previously, mainly attributable to the higher revenue from engineering and construction as well as drilling business segments.
AmBank Research in a note today said given the continuing impact of the pandemic, it has lowered financial year 2022 — 2024 (FY2022 — FY2024) earnings forecasts by 12-16 per cent due to higher operating costs together with increased production cost assumptions for the group’s 50 per cent-owned exploration and production (E&P) arm, Sapura OMV.
Meanwhile, MIDF Research opined that Sapura Energy’s future endeavours will improve on the basis of a positive global crude oil price outlook in FY2021, which will benefit its engineering and construction (E&C) and E&P business segments.
This also on the basis that Sapura Energy is well-equipped with ongoing projects and potentially new prospects and leads from ongoing bids, including for operations and maintenance and its new venture into renewables.
Both AmBank Research and MIDF Research are maintaining a “Buy” call on Sapura Energy. — Bernama
