Sapura Energy Shares Fall On News Of E&P Spinoff

Sapura Energy Shares Fall On News Of E&P Spinoff - Sapura Energy Bhd has announced plans to spin off its exploration and production (E&P) business, sending its shares down marginally on Friday.

In early trade Friday, Sapura Energy shares were down one sen, or 1.23% to 80 sen. It is among the most heavily traded counter with over 6.85 million shares exchanged hands.

Sapura Energy has engaged advisors to evaluate and advise on the potential listing of its E&P business, confirming a StarBiz Premium article last week.

It said that the company would make the necessary announcement in compliance with Bursa Malaysia Securities’ Main Market Listing Requirements should there be any material development on this matter.

Besides E&P, Sapura Energy has exposure to the engineering and construction (E&C) and drilling segments.

Of these divisions, E&P is the more stable of its business that has been hard hit by the downturn in the O&G industry that started from mid-2014 until the third quarter of last year.