Sapura Energy Bhd achieve a pre-tax loss of RM6,614.2 million on the back of a turnover of RM453.1 million for the fourth quarter ending January 31, 2022 from a pre-tax loss of RM180.276 million on the back of turnover RM1,443,544 million for the same period previously.
For the current year to date, it achieved a pre-tax loss of RM8,797,402 million on the back of a turnover of RM4,126,771 from a pre-tax loss of RM31.725 million on the back of a turnover of RM5,375, 822
In a bursa filing, Sapura Energy said that the Group revenue of RM453.1 million was 68.9% lower than the immediate preceding quarter (“Q3 FY2022”) of RM1,455.9 million, primarily due to the lower percentage of completion recognised in the current quarter resulting from recognition of foreseeable losses and higher project costs in E&C business segment.
In the current quarter, the Group recorded a loss before taxation of RM6,614.2 million which was RM5,965.0 million higher than a loss before taxation of RM649.2 million in Q3 FY2022.
The Group has made provision for impairment on goodwill on consolidation of RM3,289.9 million (Q3 FY2022: Nil) and provision for impairment on property, plant, and equipment of RM2,103.8 million (Q3 FY2022: RM212.0 million) in the current quarter.
It said that FY22 has been a challenging year for the Group and the unprecedented liquidity crunch confronting the Group was a consequence of challenging project performance and unsustainable debt servicing costs.
While the market recovery in the latter part of the year has brought improved performance from our Drilling segment, our Engineering & Construction (“E&C”) and Operation & Maintenance (“O&M”) businesses continued to face execution challenges mainly due to disruption from COVID-19 and lack of access to adequate working capital facilities.
“Our situation was further compounded by some operational underperformance in certain projects. As part of Reset, as previously announced, the Group reviewed its business direction and examined the performance of all existing contracts, which has led to the Group recognising a hefty financial loss, including significant impairment charges, in Q4 FY22.,” Sapura energy said in the filing.