KUALA LUMPUR: Sapura Energy Resources Bhd’s net loss narrowed to RM2.59mil in the second quarter ended July 31 (2Q), against a net loss of RM1.51bil in the same quarter a year ago.
Revenue for the quarter surged 57% to RM1.17bil from RM747.11mil a year earlier.
In a statement, Sapura Energy said its recorded positive earnings before interest, taxes, depreciation, and amortisation (Ebitda) of RM313mil in 2Q.
It said the performance was mainly attributable to commercial settlements from certain contracts in its engineering & construction (E&C), materialisation of additional claims in operations & maintenance (O&M), and improved rig utilisation and day rates in its drilling business segment.
The group’s E&C business segment continues to be under challenge by the current operating landscape.
“Despite the challenges, all business segments registered positive Ebitda, with E&C delivering RM38mil; O&M delivering RM47mil, and drilling delivering RM150mil,” Sapura Energy said.
In the first six months to July 31, Sapura posted a net profit of RM89.34mil against a net loss of RM1.61bil while revenue dipped 7.15% to RM2.05bil from RM2.21bil posted last year.
“We are encouraged by our financial performance this quarter, as it indicates early results in our Reset Plan and we are on the mend. Clearly, the game-changer in our future growth is the reduction of unsustainable debt, which we are working hard to resolve with all stakeholders,” group CEO Datuk Mohd Anuar Taib said.
Sapura Energy recently sought assistance from the Corporate Debt Restructuring Committee of Malaysia (CDRC), a committee under the purview of Bank Negara, to mediate its debt restructuring negotiations
CDRC has accepted Sapura Energy’s application and the group is expected to submit a proposal for a restructuring of its debts within 60 days from September 1.
As part of portfolio rationalisation, the group recently completed the divestment of its heavy lift pipe laying vessel Sapura 3000 and entered into a memorandum of agreement (MOA) for the disposal of three drilling rigs.
Under the Reset Plan, Sapura Energy’s business segments refocused its bid funnel based on capabilities and risk appetites, while enhancing project management discipline.
The group is currently executing close to 90 projects globally, nine of which commenced in the 2Q23, and completed 18 projects in the same quarter. Its order book to date stands at RM7.7bil.