PETALING JAYA: Sapura Energy Bhd ’s net profit for the first quarter ended April 30, 2024 (1Q25) tumbled by 44% year-on-year (y-o-y) to RM82mil from RM146.1mil in 1Q24.
The integrated energy services and solutions provider said this was mainly due to higher operating expenses and higher finance costs incurred.
The cash strapped group’s revenue however saw a 24% y-o-y increase to RM1.2bil due to higher revenue recognised by its engineering and construction (E&C) segment as a result of higher project progress in the quarter.
The group recorded a pre-tax loss of RM24.4mil in the quarter versus a pre-tax profit of RM173.5mil in 1Q24, mainly due to higher operating expenses and higher finance cost incurred.
In a filing with Bursa Malaysia, Sapura Energy noted the E&C segment recorded a revenue of RM818.9mil in 1Q25, which is 42.5% higher y-o-y due to higher project progress in the quarter.
This segment’s pre-tax profit increased by RM12.5mil to RM83.8mil compared with RM71.3mil in 1Q24, in line with improved project performance.
Sapura Energy’s revenue for its operations and maintenance (O&M) segment stood at RM143.6mil or 0.6% lower y-o-y.
In terms of pre-tax profit, this segment turned profitable at RM31.7mil mainly due to settlement of claims and reversal of impairment.
Sapura Energy said its E&C and O&M business segments continue to be resilient amidst challenging operational conditions.
The ongoing lack of access to working capital and bank guarantee facilities continues to strain the group as it navigates its turnaround journey.
The company’s order book currently stands at RM7bil. Sapura Energy added the E&C and O&M segments are actively pursuing a number of prospects, focusing on transportation and installation, subsea inspection and repair and maintenance, whilst aligning its environmental, social and governance principles across all operations.
The order book held by the group’s joint venture and associate entities currently stands at RM7.1bil.