Analysts, investors and industry observers are among those anxious to know the outcome of integrated oil and gas services provider Sapura Energy Berhad’s AGM at the KL Convention Centre this Thursday (18 July).

In late June, the company reported its 1Q20 result and managed to narrow its net losses to RM109mil from RM135mil recorded in the previous corresponding quarter.

Kenanga Research is optimistic of Sapura Energy's outlook underpinned by factors like improved drilling utilisation, engineering and construction (E&C) jobs load-out, and interest and depreciation savings from its recapitalisation and impairments done last year.

Affin Hwang Capital Research meanwhile said although E&C is likely to see some margin pressure, the research house remains positive on Sapura Energy's exploration and production division as production levels will see a ramp-up in FY21 once the SK408 Gorek, Larak, Bakong field achieves first gas by year-end.

The drilling division is expected to help narrow overall losses as rig utilisation improves from the current 33% to about 55% by the end of FY20.

Read more at https://www.thestar.com.my/business/business-news/2019/07/11/sapura-energy-may-see-margin-pressure-in-fy20/#8vDkKVcqrRSqAdoy.99

The group’s revenue for the period rose 93% year-on-year (YoY) to RM1.63 bil supported by higher revenue reported from its E&C and drilling business segments.

Recently, Sapura Energy told Bursa Malaysia that it won contracts worth a total of RM1bil, that include the company’s first offshore wind contract.

The new contract awards have increased the group’s order book to RM17.3 billion to date and are expected to provide visibility on the group’s earnings for the next 3 to 4 years.

Source: LinkedIn Azlan Abu Bakar