Sapura Energy 1Q25 net profit drops 43.8% to RM82.1mil

KUALA LUMPUR: Sapura Energy Bhd’s net profit fell 43.8% to RM82.1mil in the first quarter ended April 30 (1Q25), compared with RM146.1mil in the same quarter a year ago.

The lower profit was mainly due to higher operating expenses and higher finance costs.

The group’s revenue rose to RM1.17bil in the current quarter against RM951.7mil in the corresponding quarter of the preceding year due to a higher revenue recognised from the engineering and construction (E&C) as a result of higher project progress in the current quarter.

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Sapura Energy said free cashflows generated in 1Q25 are approximately RM132mil.

E&C and operations and maintenance (O&M) business segment continues its resilience amidst its challenging operational conditions.

“The ongoing lack of access to working capital and bank guarantee facilities remains a strain to the group, as it navigates its turnaround journey,” Sapura Energy said.

“The group’s orderbook currently stands at RM7bil. E&C and O&M segments are actively pursuing a number of prospects, focusing on transportation & installation, subsea inspection and repair & maintenance, whilst aligning its ESG principles across all operations.

“The orderbook held by the group’s joint venture and associate entities currently stands at RM7.1bil,” it added.

Meanwhile, on June 6, the High Court of Malaya granted Sapura Energy and certain of its wholly-owned subsidiaries an extension of the Convening and Restraining Orders for a period of nine months till March 10, 2025.

Subsequently, Sapura Energy received a letter dated June 7, 2024 from the Corporate Debt Restructuring Committee (CDRC) stating that the CDRC had extended the standstill period for the company and its relevant subsidiaries, up to March 10, 2025.

“The extension Orders granted by the Court and standstill by the CDRC will allow the group to finalise the proposed schemes of arrangement for the approval of its creditors,” it said.