Sapura Energy

[winston]

not vested

1HFY1/23: In line, in the red
Maintain SELL and MYR0.03 SOP-based TP

SAPE remained in the red for the 6th consecutive quarter, continuously weighed down by legacy issues.

SAPE remains vulnerable for its negative mix of stretched balance sheet, tight cash flows, legacy contracts, poor execution and cost overruns.

While an operational and financial restructuring exercise is underway, turning around SAPE remains a challenge & a work in progress.

We see better value elsewhere for now.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/281440.pdf

[winston]

not vested

Sapura Energy returns to the black in 1Q with RM146m profit

By Anis Hazim

Sapura Energy Bhd’s net profit for the first quarter ended April 30, 2023 (1QFY2023) surged 58.9% to RM146 million from RM91.93 million for the same period last year on the back of lower depreciation, higher share of profit from associates and foreign exchange gains arising from the appreciation of the US dollar against the ringgit.

Quarterly revenue rose 7.41% to RM951.73 million from RM886 million in the same period last year due to higher rig utilisation days from the drilling segment and increased project activities for the operation and maintenance (O&M) segment.

The proposed restructuring schemes will include a potential financial investment from a white knight of approximately RM1.8 billion.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/672593

[winston]

not vested

14 Jun 2023

Sapura Energy's auditor flags material uncertainty over group’s ability to continue as going concern

By Reyanna Ng

An extract of the auditor's report noted that the group and the company posted a net loss of RM3.16 billion and RM3.67 billion respectively for FY2023.

Their current liabilities exceeded their current assets by RM12.66 billion and RM1.75 billion respectively.

“The group is facing severe liquidity constraints,” Ernst & Young noted.

The carrying values of the group’s goodwill and property, plant and equipment (PPE) amounted to RM239.1 million and RM5.08 billion respectively, which collectively represents 42% of the group’s assets.

Sapura Energy's restraining orders were earlier this month extended by an additional nine months, to March 10, 2024.

Also, Sapura Energy was on Tuesday granted a six-month extension till Nov 30 to submit its regularisation plan to the relevant regulatory authorities to enable it to get out of its Practice Note 17 (PN17) status.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/671218

[winston]

not vested

09 Jun 2023

Sapura Energy top active on RM1.4b wins, but analyst cautions against liquidity constraints to execute jobs

By Isabelle Francis

The cash-strapped group said it had secured 10 contracts across the Asia Pacific and Atlantic regions since last December, with a combined value of RM1.4 billion.

Public Investment Bank said it remains cautious on the execution of the projects, given Sapura Energy’s liquidity constraints to cater to such sizeable contract values. This, it said, despite some clients possibly providing advances to ensure the successful completion of the projects.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/670517

[winston]

not vested

Sapura Energy (SAPE MK)
1QFY24: Core Loss On Track, Better Rig Utilisation By 2HFY24

SAPE’s 1QFY24 core loss/EBITDA were deemed on track.

The recent contract wins of RM1.4b will help bring stronger 2HFY24 profits, on the back of more lucrative E&C works and new rig contracts.

While it continues to progress on its reset plan, the delayed PN17 regularisation plan and ongoing project slippage risks (ONGC platform) will weigh on existing share price sentiment.

Maintain HOLD. Trim target price to RM0.04, which assumes a delayed sustainable recovery from PN17.

Source: UOBKH

https://research.uobkayhian.com/content ... d8869aee93

[winston]

not vested

Sapura Energy records RM42.81mil 2Q net profit

Revenue slipped to RM1.14 billion in the quarter under review from RM1.17 billion previously, mainly due to the completion of the integrated rig drilling completion (IRDC) project in 4Q FY2023 in the drilling segment.

More than 60 per cent of Sapura Energy’s order book is for contracts outside of Malaysia.

"Within the RM6.3 billion order book, the group’s notable recent wins included a substantial contract in its engineering and construction business segment for the provision of transportation and installation services in Angola, slated for completion in 4Q 2026,”

Source: The Star

https://www.thestar.com.my/business/bus ... net-profit