Sapura Energy

Re: Sapura Energy

Postby winston » Mon Feb 04, 2019 7:33 am

not vested

Dec 30, 2017

Sapura Energy Bhd

Just as the global oil and gas (O&G) industry is gradually recovering, Sapura Energy Bhd’s dismal earnings this year has indeed surprised many in the market.

In the first nine months of its financial year 2018 (FY18), the integrated O&G services company continued to be in the red for the second consecutive quarter, with a net loss of RM1.4mil.

According to CIMB Research, Sapura Energy’s core net loss was almost four times higher than its previous loss forecast.

Precipitated by the uninspiring results, the share price has fallen to a three-year low currently. In fact, the stock has tumbled by nearly 66% from its year-to-date high of RM2.08 in April 11.

In its heyday prior to the oil price plunge, Sapura Energy, formerly known as SapuraKencana Petroleum Bhd, was Asia’s largest provider of O&G services by market capitalisation.

The company was worth RM30bil then but is now reduced to a market capitalisation of RM4.25bil.

What has gone wrong for the country’s largest O&G service provider?

The group’s two core operations – engineering and construction as well as drilling – have been suffering significant losses, while even the exploration and production division, which should have fared better in a higher crude oil price environment, registered a sharp drop in earnings.

UOB Kay Hian in a report points out that Sapura Energy’s low utilisation of rigs is a concern.

“Although the company is actively pursuing contracts, the likelihood of near-term contract win is unclear and unlikely in the immediate term, even though there is demand for 14 tender rigs up to 2020,” it says.

Moving forward, as Sapura Energy tries to return into profitability, cashflow is an important condition for the company in these trying times.

As no immediate lumpy loan repayments are needed and capital expenditure plans are already budgeted for, the group should be able to navigate through the currently-challenging environment.

Sapura Energy believes profits will recover in time and that its current performance is rather temporary.

For this to happen, the group needs to see a recovery in contract wins and a higher-than-expected drilling rig utilisation.

Source: The Star

https://www.thestar.com.my/business/bus ... s6RAIJ3.99
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 105002
Joined: Wed May 07, 2008 9:28 am

Re: Sapura Energy

Postby winston » Mon Feb 04, 2019 8:04 am

not vested

Dec 7, 2018

Valuation & Recommendation

The recent rights issue and partnership with OMV has alleviated the company’s debt troubles. The lower gearing will give more room for the company to push forward and securing new jobs.

We expect earnings to improve given the gradual pickup in global capex spending as Sapura bids for US$8.8b worth of jobs this year compared to US$2.5b in 2017.

We are keeping our recommendation at BUY with an unchanged target price of RM0.50 based on 0.5x P/B and a NTA of RM0.99 per share.

Source: JF Apex
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 105002
Joined: Wed May 07, 2008 9:28 am

Re: Sapura Energy

Postby winston » Mon Feb 04, 2019 8:10 am

not vested

Sapura's weak shares temporary, will rebound as fundamentals strong

February 1, 2019

KUALA LUMPUR: Sapura Energy Bhd's low share prices, which is at its lowest currently, is expected to be temporary as the oil and gas (O&G) giant's fundamentals are solid, supported by rebounding crude oil prices.

Sapura's share price fell to a record low of 25.5 sen on Thursday despite a rise in crude oil prices to US$62.19 a barrel.

"But over time, Sapura stocks will turn around as the company is on a solid footing with a whopping RM16 billion order book," another analyst noted.

To note, Sapura is now cash rich with RM8 billion under its belt after completing its cash call with Permodalan Nasional Bhd (PNB) last week and shareholders gave the nod to its partnership with Austria's OMV AG group.
Another market analyst said only the retail investors are spooked but institutional investors are staying put with Sapura solidly backing the stock.

He added investors should not adopt a 'herd mentality' but instead emulate PNB which has faith in Sapura by subscribing to its cash call to raise RM4 billion.

These include Public Investment, Am Investment and JF Apex Securities all recommending investors to buy Sapura stock due to its earnings potential in the future.

He said Sapura should also be measured in non-financial terms such as its production sharing contract that it won in Mexico and Brazil which will contribute to its future growth.

Source: NST

https://www.nst.com.my/business/2019/02 ... als-strong
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 105002
Joined: Wed May 07, 2008 9:28 am

Re: Sapura Energy

Postby winston » Sat Feb 09, 2019 10:36 am

vested

20190209_103157.png



Source: Ambank
You do not have the required permissions to view the files attached to this post.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 105002
Joined: Wed May 07, 2008 9:28 am

Re: Sapura Energy

Postby winston » Sat Mar 16, 2019 8:35 am

not vested

AmInvest Research upgrades Sapura Energy to Buy, ups target price to 50c

KUALA LUMPUR: AmInvestment Research upgraded its call on Sapura Energy (Sapura) to Buy from Hold with a higher fair value of 50 sen a share from an earlier 30 sen.

The research house said on Friday this was based on a lower 30% discount to its estimated diluted book value of 72 sen a share, following the completion of its RM4bil rights issue.

“Our earlier concerns on the 18.5% undersubscription or 1.8 billion ordinary shares out of the RM3bil rights shares issued at 30 sen a share on a five-for-three basis have been alleviated as the underwriters Maybank Investment Bank, CIMB Investment Bank and RHB Investment Bank have completely disposed of the shares without causing any significant price swings,” it said in a research note.

It had also become more confident of Sapura’s improving earnings prospects which currently stems overseas, principally in the Middle East, Brazil, Gulf of Mexico and West Africa.

It pointed out the company was selected as one of Saudi Aramco's four new long-term agreement programme contractors late last year. Hence, substantive order book expansions are still likely from Sapura's current tender book of US$8.5bil with prospective bids of US$14.3bil.

AmInvest Research said there were highlighted in Sapura’s new orders worth RM9.3bil for FY19 to date, which translate to 2.3 times the RM2.8bil jobs clinched in FY18 and an outstanding order book of RM17.7bil – three times FY20F revenues.

In January this year, Sapura has secured three rig drilling charters and two offshore jobs worth RM760mil that include carrying out the engineering, procurement, construction and commissioning works related to relocating and tying in

Petronas floating LNG Satu from the Kanowit field to the Kebabangan cluster off Sabah, with completion expected in the third quarter of 2020.

The group’s yard’s utilisation was expected to surge 5.8 times from 5,000 tonnes in 2018 to 29,000 tonnes in 2019 and subsequently accelerate further by 28% to 37,000 tonnes in 2020, driven by the progress completions of the Pegaga and ONGC’s KG-DWN-98/2 central processing platform projects, coupled with the three wellhead platforms for the Sapura-OMV’s Gorek, Bakong and Larak wellhead platforms.

“Our only concern is the group’s drilling division as its rig utilisation rate of below 50% currently will continue to drag the group’s overall improving earnings prospects,” it pointed out.

Together with the completion of the sale of a 50% equity stake in Sapura Upstream to Austria-based OMV Aktiengesellschaft (OMV) for an enterprise value of US$1.6bil, the research house expects Sapura’s net profit to surge by 2.2 times for FY20F and 46% for FY21F from substantive cuts in interest costs, partly offset by the upstream earnings deconsolidation.

Additionally, this will cut the group’s FY20F net gearing from 1.7 times to a comfortable 0.5 times.

“The stock currently trades at an unjustified ex-price-to-book value of 0.5 times for a company poised on an earnings inflection upturn,” it said.

Source: the Star

https://www.thestar.com.my/business/bus ... ce-to-50c/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 105002
Joined: Wed May 07, 2008 9:28 am

Re: Sapura Energy

Postby winston » Mon Mar 25, 2019 4:30 pm

not vested

Malaysia's Sapura Energy posts first quarterly profit in six

Sapura’s declared net profits of 500.4 million ringgit ($123.01 million) for the quarter ended January, it said in a stock exchange filing on Monday, versus a net loss of 2.29 billion ringgit in the same period last year.

Revenue stood at 1.49 billion ringgit from 902.7 million ringgit in the year-ago period, on higher revenue from its engineering and construction business segment.

Austrian energy group OMV agreed to establish a joint venture with Sapura in November, paying $540 million for a 50 percent stake in the Malaysian firm’s exploration assets.


Source: Reuters

https://www.reuters.com/article/sapura- ... SL3N21C1V5
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 105002
Joined: Wed May 07, 2008 9:28 am

Re: Sapura Energy

Postby winston » Tue Mar 26, 2019 9:12 am

not vested

Sapura Energy (SAPE MK)

FY19: Hit By Poor Margins; Expecting Better 2HFY20 Momentum

FY19 core loss widened due to poor E&C margins (still at early project stages) and higher rig costs which offset higher utilisation.

Fundamentals are expected to improve on interest and depreciation savings, while revenue is set to rise yoy, driven by E&C.

SAPE is also bidding for several mega LTA contracts. Nevertheless, we cut earnings forecasts, assuming lower margins, with guidance that E&C margins would be strong only from 2HFY20.

Maintain HOLD. Diluted target price: RM0.34. Entry price: RM0.32.

Source: UOBKH

https://research.uobkayhian.com/content ... e73fa72fcf
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 105002
Joined: Wed May 07, 2008 9:28 am

Re: Sapura Energy

Postby winston » Tue Mar 26, 2019 10:35 am

not vested

Sapura Energy’s losses narrowed by RM2.66b disposal gain

KUALA LUMPUR: Sapura Energy Bhd has returned to the black in the fourth financial quarter ended Jan 31, 2019 (4QFY19), thanks to a whopping RM2.66 billion one-off divestment gain.

The oil and gas giant booked in a RM1.41 billion impairment on its drilling, and engineering and construction (E&C) assets, plus a RM108.4 million impairment on goodwill in 4QFY19.

The disposal gain of RM2.66 billion, however, helped to offset the impairment of RM1.5 billion, according to its filing with Bursa Malaysia.

Consequently, Sapura Energy posted a quarterly net profit of RM500.43 million compared to a net loss of RM2.29 billion a year ago.

The divestment gain came from selling a 50% stake in its exploration and production (E&P) business, through a strategic partnership with OMV Aktiengesellschaft in November last year.

At the operation level, the group’s loss before taxation and impairment from operation swelled to RM677.46 million compared with RM177 million in the previous corresponding quarter.

A bright spot is the group’s quarterly revenue expanded 64.5% to RM1.49 billion in 4QFY19 from RM902.7 million in 4QFY18, on higher revenue from its E&C business segment.

The quarterly net profit has enabled the group to record a net profit of RM207.55 million compared to a net loss of RM2.5 billion in the previous year. The group has declared a special dividend of 0.5 sen per share for FY19, payable on June 24.

Its annual revenue fell 9.5% to RM4.57 billion from RM5.05 billion in FY18, primarily due to the lower revenue from the E&C and drilling business segments.

In a separate statement yesterday, Sapura Energy president and group chief executive officer Tan Sri Shahril Shamsuddin said despite the challenging year, the company had successfully completed two major corporate exercises, raising approximately RM7.6 billion.

“This has enabled us to reduce our net gearing to a healthy 0.6 time and provided the financial flexibility for the group to bid for and execute higher value projects, in addition to gaining a strong partner in our E&P business. We are confident that our efforts in FY19 have paved a brighter future for the group,” he said.

On prospects, Sapura Energy said its current order book of RM17.2 billion is at its highest in two years.

The group is bidding for larger and higher-value projects globally, it said.

The value of cumulative new contract wins in FY19 stood at RM9.3 billion, with notable engineering, procurement, construction, installation and commissioning awards in its core markets, including the Pegaga gas development by Mubalada Petroleum, KG-DWN 98/2 NELP block by Oil and Natural Gas Corp Ltd and Hokchi Field Development in the Gulf of Mexico.

Source: The Edge

https://www.theedgemarkets.com/article/ ... posal-gain
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 105002
Joined: Wed May 07, 2008 9:28 am

Re: Sapura Energy

Postby winston » Wed Mar 27, 2019 9:36 am

not vested

Wider losses expected for forecast years

FY1/19 core net loss of RM939m was 50% higher than expected (and more than double Bloomberg consensus), due to various cost provisions.

We take advantage of the post-rights share price rally to downgrade our call from Add to Hold, as SAPE’s return to profits may take longer than expected.

We reduce our DCF valuation of the drilling and PLSV businesses, hence we cut our SOP-based target price to 37 sen.

Source: CIMB

https://brokingrfs.cimb.com/n1kLVp4DfX4 ... 57z_w2.pdf
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 105002
Joined: Wed May 07, 2008 9:28 am

Re: Sapura Energy

Postby winston » Wed Mar 27, 2019 10:47 am

not vested

Sapura Energy (SAPE MK) : BUY
Mkt. Cap: US$1,353m
3m Avg. Daily Val: US$12.4m
Last Traded Price ( 25 Mar 2019): RM0.35
Price Target 12-mth: RM0.41 (19% upside) (Prev RM0.59)

Recovery expected
Sapura Energy recorded a core loss of RM1170m
Dragged down by E&C and drilling divisions
Earnings expected to recover led by a stronger orderbook
Maintain BUY with lower TP of RM0.41

Source: DBS

https://researchwise.dbsvresearch.com/R ... =edfjdkiia
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 105002
Joined: Wed May 07, 2008 9:28 am

PreviousNext

Return to S to Z

Who is online

Users browsing this forum: No registered users and 1 guest

cron