KUALA LUMPUR (June 27): Financially troubled Sapura Energy Bhd returned to the black in the first quarter ended April 30, 2022 (1QFY23) with a net profit of RM91.93 million, on the back of foreign exchange gains arising from the appreciation of the US dollar against the ringgit. In the preceding quarter, it had posted its biggest ever net loss of RM6.78 billion.

In the same period last year, Sapura Enery had posted a net loss of RM97.08 million.

In a Bursa Malaysia filing on Monday (June 27), the oil and gas service provider said its quarterly revenue, however, declined by 39.75% to RM886.08 million against RM1.47 billion in the year-ago corresponding period, due to lower project activities from its engineering and procurement (E&C) segment.

Earnings per share for the quarter amounted to 0.58 sen, from losses per share of 0.61 sen.

On a quarterly basis, revenue more than doubled from RM426.60 million in 4QFY22.

Sapura Energy said that it continues to improve its project execution with greater discipline and to be selective in its bids by focusing on its preferred regions, namely Asia Pacific and the Atlantic, and shifting the balance of its projects’ portfolio towards transportation and installation.

Commenting on the group’s financial performance, Sapura Energy Group CEO Datuk Anuar Taib said the group is seeing the first green shoots of recovery, following the implementation of its reset plan.

“We still have significant hurdles to overcome before we can sustain this encouraging momentum.

“Delivering our Reset Plan becomes more important than ever, as it is our route to a stable platform for the Group, enabling us to exit the PN17 status and grow in the near future,” Anuar said in a statement. 

It said that to date, the group has secured RM2.5 billion contract wins, bringing its latest outstanding order book to RM8.3 billion.

In addition, its joint venture company secured a contract of almost RM0.2 billion.

“We are improving our project execution with greater discipline, underpinned by stronger contract and cost management to protect profitability.

“With the recent contract wins, the Group expects its Drilling segment to have eleven rigs in operation by the end of FY23, from the current eight rigs. The segment strengthened its presence in Thailand with the recent award of three new long-term contracts by PTT Exploration and Production Public Company Limited.

“As part of the Reset Plan, the Group has been granted an extension of time for the Restraining Orders for a period of nine months from June 10, 2022 to March 10, 2023, which will give the Group more time to address its unsustainable debt and the outstanding amounts owed to its trade creditors,” it added.

The oil and gas company also has commenced the proof of debt (POD) exercise with its trade creditors and it is in close engagement with its lenders to restructure its outstanding borrowings.

Shares in Sapura Energy finished unchanged at 4.5 sen on Monday, valuing the oil and gas service provider at RM647.15 million.