PETALING JAYA: Sapura Energy Bhd posted a net profit of RM91.93 million for the first quarter ended April 30, 2022 compared with a net loss of RM97.07 million a year ago mainly due to foreign exchange gain arising from appreciation of US dollar against the ringgit.
However, revenue fell 39.7% to RM886.08 million from RM1.47 billion in the same quarter last year primarily due to lower project activities from engineering and construction segment in the current quarter.
The group is continuing to improve its project execution with greater discipline and continue to be selective in its bids by focusing on its preferred regions, namely Asia Pacific and the Atlantic; and shifting the balance of its projects’ portfolio towards transportation and installation.
“We are improving our project execution with greater discipline, underpinned by stronger contract and cost management to protect profitability,“ it said in a stock exchange filing.
To date, the group has secured RM2.5 billion contract wins, bringing its latest outstanding order book to RM8.3 billion. In addition, its joint venture company secured a contract of almost RM200 million. The contract wins were mainly contributed by the drilling & engineering and construction segments. The contracts were awarded in Malaysia, as well as the Asia-Pacific and Atlantic regions. The bid book is currently at RM22.8 billion.
With the recent contract wins, the group expects its drilling segment to have 11 rigs in operation by the end of FY23 from the current eight rigs. The segment strengthened its presence in Thailand with the recent award of three new long-term contracts by PTT Exploration and Production Public Company Limited.
As part of the reset plan, Sapura Energy has been granted an extension of time for the restraining orders for nine months from June 10, 2022 to March 10, 2023, which will give the group more time to address its unsustainable debt and the outstanding amounts owed to its trade creditors. The group has commenced the proof of debt exercise with its trade creditors and is in close engagement with its lenders to restructure its outstanding borrowings.
Sapura Energy is classified as a PN17 company and a regularisation plan, which forms part of the company’s current restructuring, is being put in place and will be announced to Bursa Malaysia Securities in due course.
