PETALING JAYA: Sapura Energy Bhd
, which slipped into losses in its latest second quarter due to the stronger ringgit, cautioned shareholders that “foreign exchange volatility” may continue in upcoming quarters.
Group chief executive officer Datuk Mohd Anuar Taib said the group generally maintains a natural hedge against foreign currency exposure at the operational level.
However, at the corporate level, Mohd Anuar anticipates unrealised foreign exchange losses from Sapura Energy’s existing multi-currency financing facilities.
This highlights the essential need to restructure the group’s debt portfolio, he said.
“We are actively collaborating with lenders and creditors to expedite this restructuring process to ensure greater stability for the group in the future.”
Sapura Energy reported a net loss of RM5.2mil in the second quarter ended July 31, 2024 (2Q25) as compared to a net profit of RM42.8mil in 2Q24.
Foreign exchange losses totalling RM101mil, primarily due to the depreciation of the US dollar against the ringgit, weighed heavily on the group's results.
Sapura Energy was also affected by a lower share of profit from associates due to assets held for sale and lower project cost incurred in the quarter.
“Excluding the effect of foreign exchange losses, the group’s 2Q25 adjusted net profit is RM96mil.
“With the strengthening of the ringgit, we will likely see further impact of foreign exchange volatility in the coming quarters,” according to Mohd Anuar.
In terms of earnings before interest, taxes, depreciation and amortisation (Ebitda), all business segments posted positive Ebitda in the second quarter, led by the engineering and construction (E&C) segment.
The overall Ebitda for 2Q25 reached RM241mil, representing an Ebitda margin of 20%.
Sapura Energy’s revenue in 2Q25 rose 5.7% year-on-year (y-o-y) to RM1.21bil, on the back of higher revenue from all business segments.
This was mainly contributed by higher percentage of completions from E&C and the Operations & Maintenance segment, as well as higher rigs utilisations for the drilling segment.
Loss per share in 2Q25 fell to 0.03 sen. No dividend was declared for the quarter.
Cumulatively, for the first half of financial year 2025, Sapura Energy reported a net profit of RM76.9mil, which dropped by 59.3% y-o-y.
The weaker earnings were caused by unfavourable foreign exchange losses from weakening of US dollar against the ringgit, higher operating cost, lower share of profits from associates. However, this was offset with higher operating profit from the E&C segment.
Revenue, however, rose by 13.8% y-o-y to RM2.38bil.
Sapura Energy said its order book stands at RM5.9bil, with its joint ventures holding an additional RM6.1bil.
Commenting on its prolonged debt restructuring process, Mohd Anuar said there are still a few “moving parts” that need to be ironed out.
“Our primary concern is to present a fair and equitable proposal that takes into account all stakeholders, particularly the small and medium Malaysian vendors who continue to support us throughout the turnaround effort.”
