KUALA LUMPUR (Nov 20): Sapura Energy Bhd (KL:SAPNRG) has secured a contract to provide pan-Malaysia services from Petronas Carigali Sdn Bhd.

The contract involves offshore maintenance, construction, and modification (MCM) as well as hook-up and commissioning (HUC) services for Package C2 for the Sarawak asset (SKA Oil), according to Sapura Energy's bourse filing on Wednesday.

The contract was awarded to its wholly owned unit Sapura Fabrication Sdn Bhd.

The scope of works would cover the provision of manpower, tools and equipment, materials, consumables, and other related services to HUC brownfields and greenfield including project management services, supervision and construction personnel, it said.

The contract's tenure is five years, but its value is not specified as it is a call-out contract with agreed unit rates.

Sapura Energy expects the contract to contribute positively to its earnings for the financial year ending Jan 31, 2025 (FY2025) and the subsequent years.

The Edge Malaysia weekly reported in the Oct 14-20, 2024 issue that Sapura Energy is among the beneficiaries said to win MCM and HUC contracts.

The group registered a net profit of RM76.9 million on revenue of RM2.38 billion for its six months ended July 31 this year (6MFY2024). For the first six months of FY2023, Sapura Energy reported a net profit of RM188.89 million on turnover of RM2.09 billion.

It blamed the lower profit in 9MFY2024 on unfavourable foreign exchange losses from the weakening of the US dollar against the ringgit, coupled with higher operating cost and lower share of profits from associates.

Sapura Energy’s share price settled half a sen or 14.29% lower at three sen, bringing the group a market capitalisation of RM551 million.