PETALING JAYA: Sapura Energy Bhd
will continue to implement its reset plan throughout its current financial year to enhance profitability and cash flow, ensure discipline and excellence in bidding and project execution, as well as address its unsustainable debt.
Despite challenges in accessing bank guarantees and working capital facilities, the oil and gas company said it had successfully secured RM1.4bil in contract wins, increasing its outstanding order book to RM5.8bil.
“Additionally, the non-consolidated gross order book of the group's joint-venture entities currently stands at RM4.8bil,” it said in a filing with Bursa Malaysia yesterday.
For its first quarter ended April 30, 2023, Sapura Energy’s net profit rose to RM146.09mil from RM91.93mil in the previous corresponding period,
Revenue improved to RM951.73mil from RM886.08mil a year earlier.
Basic earnings per share was at 0.91 sen versus 0.58 sen previously.
In a statement, Sapura Energy group chief executive officer Datuk Mohd Anuar Taib said the company reported a 30% improvement in earnings before interest, taxes, depreciation, and amortisation (ebitda) at RM332mil for the first quarter.
This is compared to the RM250mil ebitda reported in the corresponding quarter of the previous financial year.
“All business segments operated by Sapura Energy posted encouraging ebitda with engineering and construction (E&C) delivering RM46mil; operations and maintenance at RM7mil and drilling posting RM130mil.”
He said profit after tax and minority interests was primarily driven by the combined efforts of all business segments, which materialised through higher ebitda arising from revenue recognised from new and ongoing projects, as well as favourable foreign exchange gains following the strengthening of the dollar.
Mohd Anuar added that group revenue saw a boost due to several factors, including the commencement of a major E&C project in Congo and the steady income generated from the nearly full utilisation of its fleet of drilling rigs.
“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.
Mohd Anuar noted that nearly 70% of the group’s first quarter 2024 revenue was generated from international operations.
“As much as RM748mil in external revenue were denominated or earned in US dollars, indirectly benefiting the nation’s economy.
“Sapura Energy intends to sustain this momentum, with terms and risk levels acceptable to the Group. This is evidenced by its bid book, which primarily consists of international projects.”
He added that approximately 90% of the group’s bidding activities are currently directed towards opportunities outside Malaysia.
Going forward, the group said it is making progress towards finalising its proposed restructuring scheme and regularisation plan.
Additionally, the group has been granted a time extension up to Nov 30, 2023 to submit its PN17 regularisation plan to the relevant regulatory authorities.
