Public Invest Research noted the lower contributions from both Sapura Energy’s drilling and exploration & production (E&P) divisions continued to affect the company’s financial performance. Sapura Energy posted a net loss of RM274.41 million in Q317 from a net profit of RM158.06 million, previously due to lower revenue from its engineering and construction and drilling business segments. We believe Sapura Energy is a strong operational and reputable player, enhanced by its contract wins to-date and its operations remaining on track,” it said. MIDF Research has downgraded its Sapura Energy call on ‘Neutral’ due to investor sentiments turning unfavourable, with a revised target price of RM1.01 based. “We opine that Sapura Energy’s dismal earnings will continue to weigh heavily on its share price.”The research house noted Sapura Energy’s heavy asset base and large interest payments on debts would also further exacerbate the downward pressure on its stock price.

Source: New Strait Times December 11, 2017 09:11 UTC