Shahril decides to pump in RM100m more for Sapura Energy's cash call
He knew the value of sapura E more than us.
Highly recommend all the shareholders subscribe for all the right issue shares.

http://www.theedgemarkets.com/article/shahril-decides-pump-rm100m-more-sapura-energys-cash-call

Cover Story: Shahril confident he can turn things around
Order book stand at RM 18.2 billions

http://www.theedgemarkets.com/article/cover-story-shahril-confident-he-can-turn-things-around

Significant improvement and turn around quarterly result which moved from bad to good...
All 3 segments of sapura showed significant improvement, very impressive turn around figure.
With the latest contracts won for this yr RM 8.5 bil (only 3 quarters, more to come), the prospect of the sapura business is very impressive and looking forward much better good result in future. future finance cost saving will turn to higher profit..

Let's over subscribe all the RI to maximize our investment return at sapura...
Looking forward for massive upgrade by IBs soon...

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5998785

Sapura Energy JV secures RM3b EPCIC contract

https://www.thestar.com.my/business/business-news/2018/12/06/sapura-energy-jv-secures-rm3b-epcic-contract/

No reason not to subscribe for all the right issue shares with free warrant...

Sapura能源公司的子公司马来西亚TL Offshore有望获得一份新的一揽子合同，涉及2019季海上运输和安装工作

https://www.upstreamonline.com/cn/1649168/tl-offshore

More oil and gas jobs continue flow into the market...

among all the O & G sector, this stock is of most low risk. current low share price is drag down by right issue shares but expected to recover once it is done...

Debt reduce due to selling E & P unit and booking in RM 2 bil + profit
E & C , a lot of contracts awards received recently and keep them busy and profit for next 2 yrs.
Drilling or Rigs - waiting for more info on diversification, either sell 50% and partnering...
after right issue share, the debt reduce and financing cost reducing and expect profit in next FY..

Clear outlook and good future prospect make it lower risk compare to others..
No worry about current share price , super cheap compare to NTA RM 0.81 after right issue share.
Just focus to find money to subscribe the right issue share and get free warrant...

IMO...

Light at The End of The Tunnel for The Offshore Rig Fleet
Charter rates for Offshore rig is going up....
Be patient....

https://www.hellenicshippingnews.com/light-at-the-end-of-the-tunnel-for-the-offshore-rig-fleet/

Afcons和Sapura能源公司获印度中央处理平台合同

ONGC在8月31日开启报价，Afcons-Sapura财团报价最低，大约7.2亿美元。但由于对手拿丁集团(L&T)对Afcons作为财团领导的资格提出质疑，合同推迟了两个多月才授出。

https://www.upstreamonline.com/cn/1638134/

Buy sapura and subscribe for right issue shares...

Total contracts won announced up to now..

this financial year to-date to RM5.3 billion (up to sep) for the Group + 1.75 bil = RM 7.05 bil ( up to today) and more pending announcedment by end of this month..

一位消息人士说，Afcons和Sapura财团报价大约7.2亿美元，还说，预计意向书将在几天内被发给最低报价者。

Afcon sapura won Usd 720 mil cpp project...

https://xw.qq.com/cmsid/20180917B0WAZP00

Consortium awarded CPP job for flagship asset in Krishna Godavari basin off India's east coast

A consortium of India’s Afcons and Malaysia’s Sapura Energy has been awarded a key offshore contract by India’s Oil & Natural Gas Corporation (ONGC) for a large

Billion project for sapura...sapura will announce this in the nov contract win list....

https://www.upstreamonline.com/hardcopy/1629285/duo-wins-ongc-prize-for-key-deep-water-platform

Saudi Aramco eyes four more for LTA listing LoIs signed with Sapura Energy, COOEC, and groupings of TechinipFMC with MMHE and Lamprell with Boksalis

Saudi Aramco has signed letters of intent with four engineering, procurement and construction contractors to include them in the list covered by its coveted long-term agreement

https://www.upstreamonline.com/hardcopy/1617853/saudi-aramco-eyes-four-more-for-lta-listing

High chance for OMV buy 50% sapura energy unit at cheap price for them. At current high oil price, it is has hard to find a good price for upstream unit..

The group earmarked a 10 billion euro ($11.32 billion) budget for acquisitions in March,
Sapura energy unit consider as a good deal at current market for them. Once deal close, sapura will bill in 2 bil + profit for revising energy unit value and receive usd 800 mil...

https://af.reuters.com/article/energyOilNews/idAFL8N1XB6JY

Sapura Energy, they said, has an order book of about RM18bil, including recent wins totalling RM905mil. This is enough to sustain the group for the next three years.
Read more at

http://www.thestar.com.my/business/business-news/2018/03/14/a-question-of-valuation/#WfPmWjH1YCI5VQbp.99

Current share price is driven down by sentiment instead of fundamental of business.. sapura has not announced the recent contract won yet.. there are massive hiring by sapura yesterday, not a contract staff but permanent staff....

http://jobsadvertog.blogspot.jp/2018/03/sapura-energy-berhad.html?m=1

any move towards carving out the E&P division entirely for a separate listing, may therefore not be value accretive to the currently listed SAPE."

Since, E and P cant be listed, one uncertainty removed.

How come sapura energy want to hire so much pp today. I thought affin hwang said no more jobs for sapura energy.

http://jobsadvertog.blogspot.jp/2018/03/sapura-energy-berhad.html?m=1

FYR.... Affin report.

https://w3einvest.affinhwang.com/news/archive/Affin%20Hwang%2020180309%20SAPE%20CU.pdf

Look at the current status of Rig utilization and there is high chance that Sapura Tender/Semi Tender rig utilization will rebound back to above 50% by end of 2018. Sapura rigs are relative new compare to other operators and have high chance to get new contracts than old rigs

Current rig utilization is at upward trend.

https://www.infield.com/rigs/report-rig-utilisations

Today i spend a bit time to understand the current activities for high value Derrick Lay Vessels & subsea vessel which could contribute to significant write off.
After review their current status, most the vessels are busy now
with no cold stack. Chances of write off for these vessel is relatively low.

Sapura 3500 - In Operation at Myanmar oil field now
Sapura 3000 - Sailed to E6 Field Shell Miri for new mission Jacket and Topside installation.

LTS Sapura 3000 - Busy with Pipelay by L&T Hydrocarbon Engineering (this vessel is join venture with L & T) Recently L & T won several contracts from ONGC (Neelam field, Daman field, Bassein Development) All these contracts will use LTS SApura 3000 and keep it busy till 2019.

SapuraKencana 2000 - Not able to track it due to very little info found
SapuraKencana 1200 - Waiting for new mission at Cyprus no cold stack.
Sapura 900 - In operation at India oil field.
SapuraKencana CONSTRUCTOR - In operation at ZAWTIKA MYANMAR

Chances of huge write off for Engineering and construction for Sapura should be relative low at this moment. IMO.

Valuation by CIMB after take into consideration of "Forecast for 31 Jan 2018F impairment"


Drilling utilisation may improve in 2HFY19F
Only five of SAPE’s 15 rigs were employed in 3QFY18, and we expect the 33% utilisation
rate to remain stable in 4QFY18F, leading to an estimated 36% utilisation rate for FY18F.
For FY19F, utilisation is expected to remain flat at 35% (firm period: 29%, optional period:
6%), but we have assumed that new contract wins will help raise the full-year FY19F
utilisation to 40%. SAPE noted that there is indicative client interest to employ more of its
rigs, commencing from 3QFY19F onwards.

http://www.investing.com.my/clients/inveszcom/Downloads/Sapura_Energy_Bhd-Opportunity_to_bottom-fish_the_plunge_in_share_price_(CIMB)_08122017128201792017AM2.pdf

Sapura有望获Pegaga中央处理平台合同

https://www.sohu.com/a/205872343_661659

i already factor in this bad news... if not it wont sell at so cheap price.... Sapura is leading oil and gas company in Malaysia not small company... You should see how Armada share price react when announced bil RM impairment last yr.....

Petronas will sign agreement to develop SK408 soon... 3 trillion gas cubic feet (tcf) of gas much bigger than SK310, ~ 4 times bigger...

Petronas' subsidiary secures LNG contract to India

https://www.nst.com.my/business/2018/02/337988/petronas-subsidiary-secures-lng-contract-india

Transocean, king of floating rigs, sees expanding demand

(Bloomberg) -- Explorers are once again testing the waters in their search for oil, according to Transocean Ltd., the world’s biggest offshore rig contractor by market value.

Drillers worldwide are forecast to boost new commitments for all types of offshore work by 140 percent this year, Jeremy Thigpen, Transocean’s Chief Executive officer told analysts and investors in a conference call on Wednesday.

https://www.bloombergquint.com/business/2018/02/21/offshore-oil-recovery-beginning-in-world-s-harshest-environments

Ensco Fleet Status Report Brings Plenty Of Contracts

https://seekingalpha.com/article/4149102-ensco-fleet-status-report-brings-plenty-contracts

Sapura hopeful of further wins from tender prospects

management hopeful of further wins from tender prospects worth up to US$9.5 billion (RM37.2 billion).  

It will have more contracts won in 2018 based on.current highest tender propects..

http://www.theedgemarkets.com/article/sapura-hopeful-further-wins-tender-prospects

Most of the IBs upgrade Sapura after sapura announced contracts won... Most of the IBs has buy rating except Affin Hwang. Seem like, the trend bias to more be positive for Sapura now...

downside risk... 0,.675 ... upside RM 1 by end of 2018... worth for betting...

Q to load more....treat as opportunity to accumulate more for mid and long term gain..short term quite volatile...

loaded more Sapura this morning... today selling is due to sentiment and not factor in the good news for contract win... Recent announced China PMI data looks good and the china stock drop less today and doing well yesterday...China economy will provide some support to world market...

Est the SK310 B15 gas field contribution to Sapura with 30% shares

Production capacity 100 MMcf/d to the Petronas LNG complex in Bintulu = 93,196 MMBTU per day.
Cost price per MMBTU = USD 3 MMBTU
Current spot price for LNG ~ USD 10 ( price doubled compare to 6 month ago)
USD 8 MMBTU s used for estimation
Profit is USD 5 per MMBTU = USD 5 x 93,196 x 90 (days) = USD 41,9382000

With Sapura 30% share, profit could translate to USD 12.58 mil or RM 48.438 mil per Q.

https://www.reuters.com/article/global-lng/global-lng-march-price-eases-but-bitter-cold-arrests-decline-idUSL8N1PS1YC

Sapura Energy’s exploration and production business could fetch a valuation of at least 6 billion ringgit, or one ringgit a share based on oil price of $55 per barrel-to-$60 per barrel, said UOB Kay Hian Securities’s analyst Kong Ho Meng.

The segment is projected to record an operating profit of 150 million ringgit in the next financial year ending Jan. 31, 2019.

Listing of E& P will increase the valuation for Sapura energy and good for shareholders.

Massive Capex increased for big oil company in 2018...

Cnooc Aims for Highest Spending in Four Years as Oil Recovers.

https://www.bloomberg.com/news/articles/2018-02-01/cnooc-aims-for-highest-spending-in-four-years-amid-oil-recovery.

JP morgan raised oil price forecast....Goldman sach also raised oil price forecast.. look like oil price has recovered significantly..

https://www.cnbc.com/2018/01/29/jpmorgan-raises-oil-price-forecast-to-70-topping-many-wall-street-targets.html

https://www.thestar.com.my/business/business-news/2018/02/01/oil-jumps-as-goldman-sachs-boosts-price-forecast-by-a-third/

Research forecasts oil and gas capex and R&D spending boosts in 2018

After three tough years, confidence in industry growth has risen globally from 32% in 2017 to 63% this year. 

https://shipinsight.com/research-forecasts-oil-gas-capex-rd-spending-boosts-2018/

Sapura energy division will doing super good in current Q. Thanks to crude oil lifting price above USD 65 for 3 consecutive months couple with higher lifting volume..

The official selling price of a basket of January-loading Malaysian crude oil grades OSP/MY has been set at US$73.53 a barrel, the highest since January 2015, Reuters calculations showed on Thursday.

http://www.theedgemarkets.com/article/malaysian-jan-crude-price-rises-threeyear-high

Good to see the oil asset value in recovery mode..
Jackup rig values rise on oil recovery & Valuations for newer PSVs rise

http://www.marinelog.com/index.php?option=com_k2&view=item&id=28203:jackup-rig-values-rise-on-oil-recovery&Itemid=222

Dont feel scare when EPF selling... You should see as opportunity to buy (value stocks) when EPF selling and push down the price at deep discount...

Shell - HengYuan
Armada - EPF push to RM 0.5 , i collected at 0.53 and sold at RM 0.77
DRB - EPF also sold at deep cheap price when the share price crash...but now the share price is..
Cypark - i collected this share today, when EPF selling..i saw the value of this stock..
Sapura - i saw the value for this stock while EPF is selling...but i collected it.

EPF selling could provide an opportunity to you to collect at cheaper price.. IMO.

The drilling division, On the bright side, SKD Alliance will commence its new contract in Apr18.

SapuraKencana Drilling Sdn. Bhd. has been awarded a contract by Brunei Shell Petroleum Sdn. Bhd. (BSP) for the provision of its Tender Assist Drilling Rig SKD Alliance. The contract is scheduled to commence in April 2018 for a firm period of five years with options to extend for an additional five years.

http://www.energyglobalnews.com/skd-alliance-awarded-5-year-contract/

Positive on E & P segment :

In 3QFY18, E&P production was higher at 900k boe (2QFY18: 800k boe) and cost per barrel is USD 30-35.

Current Q - Q4'18
The seven well in-fill drilling program at PM323 has increased net reserves by 3.3mn boe, and will boost net oil production by 7,700 bpd.

Q4FY18 could has higher production at 1.5 mil barrel (with extra 7700 bpd in Q4'18)
Conservatively, with profit per barrel USD 30 x 1.5 mil barrel (crude lifting price of USD65/bbl) = RM 170 mil profit in Q4'18

New Gas Field coming online in Q4'18

Field development for SK310 B15 was completed in Oct-17 and
production will progressively ramp up until it reaches optimum level in
Jan-18.

The bright spot of Sapura E is a significant improvement on E & P segment for current Q4'18 due to higher oil price, higher oil volume and new gas field...

Short term selling by EPF provide an opportunity to collect Sapura E at cheaper price...

Last Q Sapura lifted 900k barrel of oil...This Q expected higher oil volume lifting due to Production from the PM323 oilfield may also improve now that the infill drilling at the East Belumut and West Belumut fields was completed last quarter.

Development of the SK310 B15 field off east Malaysia was completed in October last year, and production is to be progressively ramped up until it reaches optimum level this month.

Exploration and production (E&P) arm will doing very good in this Q.

Read more at https://www.thestar.com.my/business/business-news/2018/01/20/sapura-energy-to-carve-out-and-list-ep-arm/#TxcphwzpfSlmQ0bM.99

Not sure why felda keep selling this share... hai..

Any idea how much Dayang will impair for Perdana which it bought at RM 1.50 ?

Looking forward for a better coming quarterly result.

Higher rig utilization
Lower finance cost - after right issue share and repay RM bil ringgit debt
Lower operating cost - as reflected in last Q result
Expected another rig contract win in Jan 2018

CIMB Research projects quarterly profit for UMW Oil and Gas

Read more at https://www.thestar.com.my/business/business-news/2017/11/27/cimb-research-projects-quarterly-profit-for-umw-oil-and-gas/#dRIFJHQ11b3S671I.99

http://splash247.com/bumi-armada-commences-worker-cull-part-osv-department-reorganisation/

3 groups of IBs rating....buy, hold and sell..

Buy group IBs .. too optimistic, i prefer to ignore them, unrealistic TP at this moment as next 2 Quarters are the weaker quarters for Sapura.Energy.

Hold and sell group more realistic...

Hold group : Loss in FY 2018 and profit in 2019.
Sell group : Loss in FY2018 and Loss in 2019.

Make your on decision, chance of getting worst in coming quarter is very high mainly drag by drilling business loss and impairment for rigs due to low utilization.. " the hope "for improve rigs utilization is fr Q3'19 to 40 - 50% only... current rigs utilization should be maintain 33% till Q3'19

http://klse.i3investor.com/blogs/bursakakis/140945.jsp

Sapura has 15 bil of asset in drilling, 11 bil assets and 4 bils of goodwill, plenty of room for impairment with low utilization and weak charter rate for rigs...

Sapura energy lowest TP fr 3 IBs after shocked by loss in latest quarterly result.

UOB kay hian - TP RM 0.68
Affin hwang - TP RM 0.73
Kenanga - TP RM 0.82

https://www.thestar.com.my/business/business-news/2017/12/09/blip-for-sapura-energy/

The major contributor for Q4 impairment could be fr rigs which only 5 out of 15 rigs in operation.. based on latest rig contract won by umwog, the daily charter rate still remain weak...petronas has reduced rigs requirement by half for next 2 yrs has putting more pressure on rigs or drilling market.

Petronas said in its Petronas Activity Outlook report that the need for jack-up rigs that is used in exploration activities had been reduced by half to about 10 rigs for the 2018-2020 period, compared to 20 from 2013-2014.

Read more at https://www.thestar.com.my/business/business-news/2017/12/07/no-yearend-respite-for-og-firms/#MpOZvpl1zmeiHbrt.99

Next 2 quarters are the weakest...Q4 and Q1.. therefore, do expect next Q worst than latest QR. Today, all the IBs are busy downgrading this shares after shocked by the unexpected loss in the strongest Q. Every IB expected profit Q and shocked by the loss.

This occurred even though Sapura’s strongest quarters are in the second and third quarters due to the usual lower asset utilisation rates during the monsoon season in the first and fourth quarters.
 
“Given the likelihood of additional asset impairments in 4QFY18, we view the 53% discount to book value as justified,” it said.
Read more at https://www.thestar.com.my/business/business-news/2017/12/08/aminvest-research-retains-hold-for-sapura-energy/#UXzROJv4oK4M7CPM.99