Sapura Energy records net profit of RM30.89mil in 3Q

KUALA LUMPUR: Announcing its results for the third quarter of its 2024 financial year (FY24), Sapura Energy Bhd said the operating conditions for the engineering and construction (E&C) and operations and maintenance (O&M) segments have been challenging, and will remain so for the remainder of the year.

Financial constraints clipped the group’s ability to improve business performance, particularly in terms of order book replenishment, said group CEO Datuk Mohd Anuar Taib.

“While we work to resolve the financial limitations through a regularisation plan, there is also a critical need to bolster Operational Excellence, to preserve project margins and drive consistent results”, he said in a statement.

In the quarter ended Oct 31, 2023, Sapura Energy posted a net profit of RM30.89mil, three times net profit of RM10.18mil in the same quarter in 2022.

Basic earnings per share rose to 0.19 sen from 0.06 sen previously.

The group reported revenue of RM1.1bil, down from RM1.28bil in the previous comparative quarter due to lower contribution from the E&C business semgnet from a lower percentage of completion of projects executed.

Cumulatively, the group’s net profit over three quarters came to RM219.78mil, up from RM99.53mil in the same period in 2022 while revenue was RM3.2bil, down from RM3.33bil in the comparative period.

The group said its orderbook currently stands at RM5.4bil with both E&C and O&M segments actively pursuing prospects within and outside of Malaysia.

It added that the order book held by the group’s joint venture and associate entities currently stands at RM3.6bil.

Meanwhile, Sapura Energy said the receipt of the approval-in-principle from its financiers on Dec 12, 2023, will enable the group to proceed with the next phase of its regularisation plan to address its status as a Practice Note 17 (PN17) issuer.

The oil and gas services provider said it has received confirmation from the Corporate Debt Restructuring Committee that at least 75% of the financiers of its approximately RM10.3bil in Multi-Currency Financing Facilities have provided the requisite approval-in-principle for a proposed debt restructuring scheme.

The approval in principle will facilitate court-convened meetings with all its creditors.