PETALING JAYA: After three profitable quarters, Sapura Energy Bhd reported a net loss once again in its fourth quarter ended Jan 31, 2024.
But despite that, the net loss of RM728.44mil during the latest quarter had narrowed from RM3.26bil in the same quarter a year ago.
Revenue for the quarter dropped by 13% on a year-on-year basis to RM1.06bil.
“While we have made progress, we are not out of the woods yet.
“Our reset plan is very complex and there remains a lot of hard work ahead of us before we achieve long-term financial and operational stability,” said Sapura Energy’s chairman Datuk Mohammad Azlan Abdullah in a statement.
“The progress we have made so far demonstrates our determination and resilience in navigating through those complexities to secure a sustainable future for Sapura Energy and its stakeholders,” he added.
Looking ahead, Sapura Energy said it remains cautiously optimistic about its business prospects for the financial year 2025 (FY25).
“The group is committed to its operational turnaround by focusing on efficiency improvements, enhancing client relationships and fostering greater collaboration with clients, partners and vendors,” said its group chief executive officer Datuk Mohd Anuar Taib.
“Despite the challenges posed by the ongoing restructuring process, we are determined to progress our reset milestones and further solidify Sapura Energy’s market position,” he added.
As part of its reset plan to achieve long-term sustainability, the group said it has been actively pursuing debt restructuring, which saw significant milestones achieved in FY24.
This includes receiving confirmation from the Corporate Debt Restructuring Committee that its proposed restructuring scheme (PRS) has been obtained from the majority of the financiers of its multi-currency financing facilities, it said.
“This crucial step is part of the group’s efforts to restructure its debt burden to a sustainable level,” Sapura Energy said.
Additionally, it also noted the High Court granted it and 22 of its subsidiaries new convening and restraining orders recently.
This facilitates the finalisation of the PRS ahead of court convened meetings with creditors.
It also noted that the divestment of the SapuraOMV Upstream is on target for completion.
This is part of the group’s PRS as well, it said.
Its drilling business segment generated robust earnings before interest, taxes, depreciation and amortisation of RM484mil.
This came on outstanding operational performance and favourable market conditions, it said.
“Despite operating difficulties, we continued to deliver our promise to clients, safely completing more than 20 major projects and eight drilling campaigns in FY24,” said Mohd Anuar.
“We are grateful to the clients, partners and vendors who stood by us during the challenging year,” he added.
The operating conditions for its engineering and construction, and operations and maintenance business segments continued to be adversely affected by the lack of access to working capital and bank guarantee facilities, it said.
This is further exacerbated by project execution challenges for projects in Malaysia and West Africa.
These have been operationally completed, it added.
Sapura Energy said it is proactively pursuing contractual resolutions with the respective clients pertaining to this matter.
Meanwhile, it also recently delivered the KG-DWN-98/2 central processing platform for India’s Oil and Natural Gas Corp, which is a significant component in India’s energy security strategy.