KUALA LUMPUR: Sapura Energy Bhd’s net loss for the financial year ended January 31, 2022 (FY22) widened to RM8.9bil from RM160.87mil a year ago.

       Revenue declined to RM4.13bil from RM5.35bil previously due to the lower percentage of completion recognised in the current year, resulting from recognition of foreseeable losses and higher project costs in the engineering and construction (E&C) business segment, it said in a filing with Bursa Malaysia yesterday.

       It said the E&C and operation and maintenance (O&M) businesses continued to face execution challenges mainly due to disruption from Covid-19 and lack of access to adequate working capital facilities despite the market recovery in the latter part of the year has brought improved performance from its drilling segment,

       “Our situation was further compounded by some operational underperformance in certain projects,” it said.

       For the fourth quarter, Sapura Energy’s net loss widened to RM6.61bil from RM216.03mil in the same period last year while revenue decreased to RM453.14mil from RM1.44bil in the corresponding quarter previous year.

       On prospects, the company said it aimed to overcome the financial and operational challenges in FY23 and determined to continue playing a contributory role in the energy sector amidst the current global uncertainties by bringing its people and assets to unlock values together with its business partners.

       “We expect the drilling segment to perform well under the current market conditions with an average of nine rigs expected to be in operation. This business will continue to generate improved and stable operational cash flows in FY23.

       “The group continues to work together with our business partners to execute projects on our order book, currently standing at RM6.6bil,” it added. — Bernama