March 28, 2018 / 6:50 AM / 6 months ago

Malaysia's Sapura Energy posts fourth quarter net losses on asset impairments

KUALA LUMPUR, March 28 (Reuters) - Malaysia’s largest oil and gas services company Sapura Energy Bhd on Wednesday reported a fourth quarter net loss, due to asset impairments and lower revenue from its engineering and construction and drilling segments.

Sapura Energy posted a net loss of 2.29 billion ringgit ($593.73 million) for the quarter to Jan. 31 against a net loss of 172.3 million ringgit in the same period a year ago, according to a filing on the local stock exchange.

Revenue stood at 1.19 billion ringgit, compared with 1.81 billion ringgit a year ago.

For the full year, Sapura posted a net loss of 2.5 billion ringgit, including 2.1 billion ringgit in impairments, mainly of its drilling rigs. The loss compared with a 206 million ringgit profit a year ago.

Sapura said in its filing that the impairment would enable the group to operate at a lower cost base going forward, and the company continued to optimise costs, including impairing assets.

“The industry has seen a gradual recovery from the low levels of activity experienced in the last three years as reflected in the higher crude oil prices,” it said.

“The group remains focused on maintaining strong operational performance and replenishing the order book by strengthening its position in existing markets and embedding ourselves into new ones to enlarge the bid opportunities.”

Sapura Energy’s shares were down 1.8 percent on Wednesday afternoon, underperforming a 0.2 percent decline in the benchmark index. ($1 = 3.8570 ringgit) (Reporting by Emily Chow; editing by Richard Pullin)

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