KUALA LUMPUR, June 26 — Sapura Energy Bhd’s net profit for the first financial quarter ended April 30, 2023 (1Q FY2024) rose 58 per cent to RM146.09 million from RM91.93 million in the same quarter for the previous financial year.
Revenue increased to RM951.73 million from RM886.08 million previously due to higher rig utilisation from the drilling segment and increased project activities for the operations and maintenance (O&M) segment.
In a filing to Bursa Malaysia today, the company said the higher profit was mainly due to lower depreciation, higher share of profit from associates, and net foreign exchange gain arising from the US dollar appreciation against ringgit.
The group reported a 30 per cent improvement in earnings before interest, taxes, depreciation, and amortisation (Ebitda) at RM332 million for the quarter under review compared to the RM250 million Ebitda in the corresponding quarter a year ago.
All business segments operated by Sapura Energy posted encouraging Ebitdas with engineering and construction (E&C) delivering RM46 million, O&M RM7 million, and drilling RM130 million.
Group chief exceutive officer Datuk Mohd Anuar Taib said the results were rooted in the group’s resilience and determination to turn around the company despite its Practice Note 17 (PN17) status with limited access to working capital and bank guarantees.
“Our strategy to deploy key assets beyond Malaysian borders augments our ability to secure work and complete projects for international clients. This strategy has enabled the group to export its expertise and bring back revenues earned in US dollars to our shores,” he said.
The group said it will continue to implement its “reset” plan throughout FY 2024 to enhance profitability and cashflows, ensure discipline and excellence in bidding and project execution, and address its unsustainable debt.
“Despite challenges in accessing bank guarantees and working capital facilities, the group has successfully secured RM1.4 billion in contract wins, increasing its outstanding order book to RM5.8 billion.
“Additionally, the non-consolidated gross order book of the group’s joint-venture entities currently stands at RM4.8 billion. Foreign contracts account for 72 per cent of the total new wins, indicating a growth trajectory beyond Malaysian borders,” it noted.
Of the RM979 million new wins in E&C segment, 58 per cent are transportation and installation projects in the Atlantic/West African region, which is part of the group’s growth strategy, it said.
In the drilling segment, it said 10 out of 11 rigs are operational, with six operating internationally. The segment is anticipated to reach full capacity by end-2Q FY2024.
Sapura Energy also said FY2024 holds significant importance for the group as it strives to address its unsustainable debt, outstanding amounts owed to trade creditors, and its PN17 status.
“The group is making progress towards finalising its proposed restructuring scheme (PRS) and regularisation plan, with an extension of time granted for the regularisation plan and restraining orders until November 30, 2023 and March 10, 2024, respectively.
“These extensions will enable the group to finalise its PRS and regularisation plan that will be fair and equitable to all stakeholders,” it added. — Bernama
