KUALA LUMPUR (June 9): Sapura Energy Holdings Bhd shares were heavily traded during early session on Friday (June 9) with 235 million shares changing hands, more than six times its average daily trading volume, after it announced that it has secured 10 contracts worth RM1.4 billion.
At the time of writing, Sapura Energy shares settled at 0.4 sen or 14.3% higher at four sen, implying a market capitalisation of RM639 million.
In a filing with Bursa Malaysia on Thursday (June 8), the cash-strapped group said it had secured 10 contracts across the Asia Pacific and Atlantic regions since last December, with a combined value of RM1.4 billion.
In a note on Friday, Public Investment Bank said it remains cautious on the execution of the projects, given Sapura Energy’s liquidity constraints to cater to such sizeable contract values.
This, it said, despite some clients possibly providing advances to ensure the successful completion of the projects.
The research firm estimates that the group’s existing order book has surged to RM7.0 billion, after adding the new contracts to its 4QFY2023 orderbook of RM5.6 billion.
“Notably, the group has been granted a third extension with regard to its debt restructuring exercise, and is also in the midst of seeking extension from regulators for submission,” it added.
The oil and gas (O&G) services provider said in Thursday’s filing that the contracts were awarded to its engineering and construction (E&C), drilling, and operations and maintenance business segments, through the group's wholly owned subsidiaries.
The contracts were awarded between December 2022 and May 2023, with more than 70% of the combined contract value coming from projects outside of Malaysia.