Sapura Energy's 1Q net profit tumbles 75.5%
Malaysian oil, gas company warns of continued volatility
CK TAN, Nikkei staff writer
KUALA LUMPUR -- Sapura Energy said on Monday that it is facing tough business conditions going forward after a poor performance in its first quarter, which ended on Apr. 30.
Net profit tumbled 75.5% year on year to 27 million ringgit ($6.3 million) due to lower contributions from its drilling, and exploration and production businesses. Revenue was down 9% to 1.77 billion ringgit, the group said in a press release.
Formerly known as SapuraKencana Petroleum, the group said rigs left idle in the the first three months of fiscal 2018 reduced drilling revenue 38% to 385.4 million ringgit. The termination late last year of the Berantai Risk Service Contract with Petronas has also hit exploration and production earnings.
Engineering and construction, the group's biggest revenue contributor, posted a 17% increase in earnings as business improved in the quarter. Even so, the company warned of a downward trend in the industry for capital expenditure as uncertainty continues to hang over crude oil prices.
"We anticipate the demanding conditions within the industry to continue into the foreseeable future," said Shahril Shamsuddin, Sapura Energy's president.
Shares of Sapura Energy ended 0.54% higher at 1.85 ringgit on Monday while the benchmark FTSE Bursa Malaysia KLCI was 0.13% lower.