Sapura secures RM580mil contract extension in Brazil & More Breaking News

Written by enews

PETALING JAYA: Sapura Energy Bhd

has been given an extension of a charter and service contract by Petroleo Brasileiro SA (Petrobras) in Brazil worth RM580mil.

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In a statement yesterday, the oil and gas company said the contract was awarded to a joint venture company under its engineering and construction (E&C) segment.

It added that the two-year contract extension is for its pipe-laying support vessel (PLSV) Sapura Esmeralda.

“The contract was awarded to Sapura Navegacao Maritima SA, a wholly-owned subsidiary of Seabras Sapura Participaceoes SA, a joint venture company between Sapura Offshore Sdn Bhd and Seabras Servicos De Petroleo SA.

“The contract scope of work includes the provision of services and charter of installation and recovery of flexible pipes in the Brazilian waters in a maximum water depth of 2,500m.”

Sapura Energy said the two-year contract duration for Sapura Esmeralda had commenced yesterday.

“The award strengthens Sapura Energy’s presence in Brazil, signifying its ability to create strong partnerships and deliver value to clients.

“The E&C segment operates six PLSVs in Brazil, with a utilisation rate of about 95%.”

Sapura Energy returned to a profit after five quarters of losses helped by approved commercial settlements and foreign exchange (forex) gains following the strengthening of the US dollar.

The cash-strapped oil and gas-related support services provider posted earnings of RM91.9mil in the first quarter ended April 30 as compared to a net loss of RM97mil it suffered for the same period a year ago.

It had booked a net forex gain of RM175.91mil in the period as compared to a net forex loss of RM42.69mil in the same quarter a year ago.

Group revenue for the quarter, however, declined almost 40% year-on-year (y-o-y) to RM886.08mil due to a weaker quarter from its business divisions.

Sapura Energy’s E&C division’s quarterly revenue dropped by 48.1% y-o-y while the drilling segment’s revenues dropped by 8% y-o-y.

The company is undergoing a proof of debt exercise with its trade creditors and aims to finalise a proposed scheme or arrangement as soon as possible.

The group had recently received a drawdown of RM300mil from its existing working capital facility, backed by proceeds from the disposal of its pipe-laying and heavy-lift vessel Sapura 3000.

Sapura Energy is also working to secure additional sources of funding.

Its drilling and E&C business segments recently secured major contract awards in the eastern and western hemispheres with a combined value of about RM2.5bil, and an additional win of almost RM200mil from its joint venture company.

The group’s order book currently stands at RM8.3bil.

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