Sapura Energy records RM42.81mil 2Q net profit

KUALA LUMPUR: Sapura Energy Bhd has recorded a second quarter (2Q) ended July 31, 2023, after recording a net profit of RM42.81 million, against a net loss of RM2.59 million in the same quarter last year.

In a filing with Bursa Malaysia, the oil and gas company said the improved 2Q Financial Year 2024 (FY2024) performance was mainly due to lower depreciation, a higher share of profit from joint ventures and associates, as well as favourable foreign exchange gain from the appreciation of the US dollar against the ringgit.

Revenue slipped to RM1.14 billion in the quarter under review from RM1.17 billion previously, mainly due to the completion of the integrated rig drilling completion (IRDC) project in 4Q FY2023 in the drilling segment.

In a separate filing, group chief executive officer Datuk Mohd Anuar Taib said Sapura Energy is building on its steady recovery to set the stage for future growth.

"To maintain this positive momentum, we will continue to improve the group’s cash flow and earnings before interest, taxes, depreciation, and amortisation and strengthen operational efficiencies to protect project margins and drive consistent results,” he said.

Mohd Anuar said that currently, more than 60 per cent of Sapura Energy’s order book is for contracts outside of Malaysia.

"Within the RM6.3 billion order book, the group’s notable recent wins included a substantial contract in its engineering and construction business segment for the provision of transportation and installation services in Angola, slated for completion in 4Q 2026,” he said.

Mohd Anuar said that to improve its financial strength, Sapura Energy is pressing ahead with implementing its Reset plan to address its unsustainable debt and Practice Note 17 status.

"The group is actively working towards achieving an agreement in principle with its financiers by the end of 2023.

"Addressing our unsustainable debt remains a crucial part of our sustainability, and we will continue to make every effort to resolve this with all relevant stakeholders,” he added. - Bernama

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