KUALA LUMPUR: Sapura Energy Bhd’s fortunes have turned for the better after recording a net profit of RM42.81 million in the quarter ended July 31, 2023 (Q2 FY2024) compared to a net loss of RM2.59 million in the same quarter last year.
In a filing with Bursa Malaysia, the oil and gas company said the improved Q2 FY2024 performance was mainly due to lower depreciation, a higher share of profit from joint ventures and associates, as well as favourable foreign exchange gain from the appreciation of the US dollar against the ringgit.
Revenue slipped to RM1.14 billion from RM1.17 billion previously, mainly due to the completion of the integrated rig drilling completion (IRDC) project in Q4 FY2023 in the drilling segment.
In a separate filing, group CEO Anuar Taib said Sapura Energy is building on its steady recovery to set the stage for future growth.
“To maintain this positive momentum, we will continue to improve the group’s cash flow and earnings before interest, taxes, depreciation, and amortisation and strengthen operational efficiencies to protect project margins and drive consistent results,” he said.
Anuar said that currently, more than 60% of Sapura Energy’s order book is for contracts outside of Malaysia.
“Within the RM6.3 billion order book, the group’s notable recent wins included a substantial contract in its engineering and construction business segment for the provision of transportation and installation services in Angola, slated for completion in Q4 2026,” he said.
In a separate filing today, the group announced that its wholly-owned subsidiaries have signed a contract with Azule Energy Angola BV for the provision of offshore transportation and installation services in Angola worth US$300 million (RM1.4 billion).
The subsidiaries were Sapura Offshore Sdn Bhd, Sapura Energy DMCC and Sapura Energy Engineering & Construction, LDA.
“The contract scope of work comprises engineering services, transportation, installation and other activities related to the Quiluma and Maboqueiro Platform for the Angola Northern Gas Complex project,” the oil and gas group said in the filing.
The contract is expected to contribute positively to the group’s earnings for FY2024 and subsequent years, Sapura Energy added.
Anuar said to improve its financial strength, Sapura Energy is pressing ahead with implementing its reset plan to address the company’s unsustainable debt and Practice Note 17 status.
“Addressing our unsustainable debt remains a crucial part of our sustainability, and we will continue to make every effort to resolve this with all relevant stakeholders,” he added.
At market close, Sapura Energy’s share price was up by 0.5 sen (10%) at 5.5 sen, giving it a market capitalisation of RM878.85 million.