KUALA LUMPUR: Sapura Energy Bhd returned to a profit after five quarters of losses helped by approved commercial settlements and foreign-exchange (forex) gains following the strengthening of the US dollar.
The cash-strapped oil and gas-related support services provider posted earnings of RM91.9mil in the first quarter ended April 30 (1Q23) as compared to a net loss of RM97mil it suffered for the same period a year ago, after booking a net forex gain of RM175.91mil in the period as compared to a net forex loss of RM42.69mil it reported in the same quarter a year ago.
“We are seeing the first green shoots of recovery following the implementation of our Reset Plan,” said Sapura Energy Group CEO Datuk Mohd Anuar Taib in a statement yesterday.
“We still have significant hurdles to overcome before we can sustain this momentum,” he added.
Group revenue for the quarter however declined almost 40% year-on-year (y-o-y) to RM886.08mil due to a weaker quarter from its business divisions.
Sapura Energy’s engineering and construction (E&C) division’s quarterly revenue dropped by 48.1% y-o-y while the drilling segment’s revenues dropped by 8% y-o-y.
The PN17 classified company said a regularisation plan, based on its Reset Plan, is currently being formulated.
Sapura Energy is undergoing a proof of debt exercise with its trade creditors and aims to finalise a proposed scheme or arrangement as soon as possible.
“The group aims to present a fair and equitable proposal agreeable to all stakeholders,” the Sapura Energy statement noted.
The group recently received a drawdown of RM300mil from its existing working capital facility, backed by proceeds from the disposal of its pipe-laying and heavy-lift vessel Sapura 3000. Sapura Energy is also working to secure additional sources of funding.
Its drilling and E&C business segments recently secured major contract awards in the Eastern and Western Hemispheres with a combined value of about RM2.5bil, and an additional win of almost RM0.2bil from its joint venture company. The group said its order book currently stands at RM8.3bil.
These awards signal a deliberate shift in its bid strategy to focus on areas where it is highly competitive, it said.
In the first quarter, the group completed 11 major projects, including offshore transportation and installation in Congo; an engineering, procurement, construction, installation, and commissioning contract in Mexico, and a drilling campaign in Sarawak. Sapura Energy shares closed unchanged at 4.5 sen yesterday.