Sapura Energy JVs win US1.8b contracts for subsea engineering and related services in Brazil

KUALA LUMPUR (May 7): Sapura Energy Bhd’s joint venture companies (JVCos) have bagged contracts worth US$1.8 billion (RM8.53 billion) to provide engineering services via six pipe-laying support vessels.

In a bourse filing on Tuesday, Sapura Energy said the contracts were awarded by Petroleo Brasileiro Sa (Petrobras) to JVCos of Sapura Energy and Paratus Energy Services Ltd.

The scope of work includes the provision of subsea engineering, installation and other services, by using the pipe-laying support vessels in the Brazilian waters. The vessels shall perform all operations required, including the installation of flexible pipes, electric-hydraulic umbilical and power cables.

The Practice Note 17 (PN17) group said the contracts are for three years and are expected to contribute positively to Sapura Energy’s earnings for the financial year ending Jan 31, 2025 (FY2025) as well as subsequent years.

Sapura Energy has recently obtained its second six-month extension till end May to submit its PN17 regularisation plan, following its first six-month extension to Nov 30, 2023.

It fell into PN17 status end-May 2022, when its shareholders’ equity of RM85 million fell below 50% of its share capital of RM10.9 billion.

Sapura Energy’s share price closed up 0.5 sen or 11.1% to five sen on Tuesday, bringing the group a market capitalisation of RM919 million.

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