Sapura Energy returns to the black with RM91.9mil net profit in 1Q

KUALA LUMPUR: Sapura Energy Bhd has returned to the black with a net profit of RM91.93mil in the first quarter ended April 30 (1Q23) from a net loss of RM97.07mil in the same quarter last year, on favourable foreign exchange gains following the strengthening of the US dollar.

The oil and gas service provider’s revenue, however, fell 39.7% to RM886.1mil against RM1.47bil a year ago.

Sapura Energy improved its performance from the preceding quarter (Q422) when it posted a loss after tax and minority interests of RM6.8bil. In the same quarter, the group recorded an operating loss of RM1bil on the back of RM427mil revenue.

In a statement, Sapura Energy said all operating subsidiaries returned positive earnings before interest, taxes, depreciation, and amortisation (Ebitda) with engineering and construction (E&C) delivering RM62mil Ebitda from RM587.8mil revenue; operations and maintenance (O&M) delivering RM31mil Ebitda on the back of RM120.9mil revenue; and drilling delivering RM50mil Ebitda on the back of RM231.8mil revenue.

As part of its holistic restructuring plan (Reset Plan), the group embarked on a series of negotiations with clients for amicable solutions to ensure project delivery.

Sapura Energy said its profit after tax and minority interests in 1Q23 was mainly derived from such ongoing efforts, which materialised through approved commercial settlements and favourable foreign exchange gains following the strengthening of the US dollar.

“We are seeing the first green shoots of recovery, following the implementation of our Reset Plan,” Sapura Energy group CEO Datuk Mohd Anuar Taib said.

“We still have significant hurdles to overcome before we can sustain this encouraging momentum”.

Sapura Energy is currently classified as a PN17 company and a regularisation plan, based on the group’s Reset Plan, is currently being formulated.

“Delivering our Reset Plan becomes more important than ever as it is our route to a stable platform for the group, enabling us to exit the PN17 status and grow in the near future,” Mohd Anuar said.

Sapura Energy recently disclosed that its drilling and E&C business segments secured major contract awards in the Eastern and Western Hemispheres with a combined value of about RM2.5bil, and an additional win of almost RM200mil contributed by its joint venture company. Its order book currently stands at RM8.3bil.