business

SEB's units bag RM615m contract

KUALA LUMPUR: Sapura Energy Bhd's (SEB) wholly-owned subsidiaries and joint venture have been awarded contracts/contract extensions in Malaysia, Mozambique and Brazil with a combined value of approximately RM615.0 million.

SEB said the contracts bring its total order book year-to-date to RM15.1 billion.

In a statement, SEB said Sapura Fabrication Sdn Bhd (SFSB) won a contract from Hess Exploration And Production Malaysia BV under the Petronas Frame Agreement, for the provision of engineering, procurement, construction and commissioning (EPCC) plus Installation for Full Field Development (FFD) Phase 3 Facilities, North Malay Basin, offshore Peninsular Malaysia.

SEB said SFSB also undertook work on FFD Phase 1 and FFD Phase 2 Facilities for Hess.

Besides that, Sapura Energy will be undertaking its first deep-water project in Area 4, Rovuma Basin, offshore Mozambique.

It said the contract from Mozambique Rovuma Venture S.p.A. is for the provision of a subsea installation vessel for transportation and installation of Christmas trees.

In Brazil, Petróleo Brasileiro SA (Petrobras) has awarded Sapura Navegação Marítima S.A. a contract extension to charter and operate Sapura Topazio, a dynamic positioning (DP) 2 self-propelled pipelaying vessel.

“This is on the back of the successful completion of a five-year charter with Petrobras where the ultra-deepwater pipelay vessel had achieved 98 per cent uptime utilisation for the five-year period,” it said in a statement.

For the group’s drilling segment, Sapura Drilling Asia Sdn Bhd, has been awarded a contract extension for the provision of its semi-submersible tender assist drilling rig, Sapura Esperanza, by Sarawak Shell Bhd/Sabah Shell Petroleum Co Ltd.

It said the contract, which entails drilling six wells for Malikai phase 2 drilling campaign, offshore Sabah, will see work commencing in third quarter of financial year 2021.

Meanwhile, SEB’s net loss widened in the Q3 ended October 31, 2019 to RM100.89 million from a net loss of RM31.09 million recorded in the same quarter a year ago.

“Depreciation and amortisation as well as finance costs have reduced as an outcome of impairments undertaken in the previous financial year and repayment of borrowings earlier this financial year, respectively,” it said.

SEB’s revenue in Q3 increased to RM1.78 billion from RM1.21 billion, reflected by the large volume of projects or activities that are in their early execution phases, involving mainly engineering and procurement, with lower project margins.

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