corporate

Sapura Energy posts losses, higher revenue in Q3

KUALA LUMPUR: Sapura Energy Bhd slipped into the red in the third quarter ended Oct 31, 2024 (3Q25) with a net loss of RM293.06 million from a net profit of RM30.89 million a year ago.

This was dragged by unfavourable foreign exchange losses, the group said.

Group revenue, however, rose 4.4 per cent to RM1.15 billion from RM1.10 billion previously, mainly attributed to the engineering and construction (E&C) segment, its filing to Bursa Malaysia showed.

Sapura Energy noted that the growth was also driven by the favourable settlement of claims and higher percentages of completion for projects and operations and management (O&M) segment, due to higher activity levels of the projects.

The group registered a loss per share of 1.59 sen compared to an earnings per share of 0.19 sen in 3Q24.

For the cumulative period of nine months, Sapura Energy posted a net loss of RM216.16 million compared to a net profit of RM219.78 million a year ago, while revenue improved to RM3.54 billion from RM3.20 billion.

Sapura Energy said it remains cash generative with RM252 million of free cash flow generated in year-to-date of FY25.

The group's orderbook currently stands at RM6.0 billion.

In a separate statement, Sapura Energy interim chairman Shahin Farouque Jammal Ahmad said the group is actively working with lenders and creditors to accelerate this exercise and enhance its financial stability and resilience for the future.

"As we mentioned previously, this underscores the critical importance of restructuring our debt portfolio to mitigate these risks.

"Despite financial constraints and the impact of foreign exchange losses, we have demonstrated resilience and operational excellence in delivering our promises to clients," he noted.

Looking ahead, Sapura Energy said financial constraints continue to limit its business expansion, especially in order book replenishment, where it trails major international peers.

The group 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.

The group also continues to progress its restructuring plan, which includes efforts to resolve its unsustainable level of debt and amounts owed to trade creditors.

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