SAPURA ENERGY RECORDS NET LOSS OF RM293.05 MLN IN 3Q

KUALA LUMPUR, Dec 12 (Bernama) -- Sapura Energy Bhd recorded a net loss of RM293.06 million for the third quarter ended Oct 31, 2024, (3Q 2024) compared to a net profit of RM30.88 million posted in 3Q 2023 due to unfavourable foreign exchange losses.

Revenue, however, rose to RM1.15 billion, or a 4.4. per cent increase, against RM1.10 billion previously, mainly attributed to the engineering and construction segment, driven by the favourable settlement of claims and higher percentages of completion for projects and operations and maintenance segment, due to higher activity levels of the projects. 

For the nine months of its financial year ending Jan 31, 2025, the group's net profit stood at RM216.16 million compared to a net profit of RM219.78 million, while revenue improved to RM3.54 billion from RM3.20 billion in the corresponding period last year, it said in a filing with Bursa Malaysia today. 

In a separate statement, Sapura Energy said that while the group effectively maintains a natural hedge against foreign currency exposure at an operational level, it is impacted by unrealised foreign exchange losses arising from its existing multi-currency financing facilities.

Interim chairman Shahin Farouque Jammal Ahmad said this underscores the critical importance of restructuring Sapura Energy's debt portfolio to mitigate these risks.

"We are actively working with lenders and creditors to accelerate this exercise and enhance the group's financial stability and resilience for the future,” he said. 

Sapura Energy said it remains cash-generative, with RM252 million in free cash flow year-to-date in the financial year 2025, and its unrestricted cash balance stood at RM1.59 billion as of Oct 31, 2024.

Looking ahead, the group said it will continue to focus on securing opportunities across all its business segments, leveraging on trusted partnerships with clients and peers to navigate challenges related to limited liquidity.

Meanwhile, Sapura Energy continues to progress its restructuring plan, which includes efforts to resolve its unsustainable level of debt and amounts owed to trade creditors.

-- BERNAMA