Sapura Energy Berhad announced its financial results for the third quarter recording profit after tax and minority interests of RM10 million, on the back of positive earnings before interest, taxes, depreciation, and amortisation of RM246 million, and revenue of RM1.28 billion.
The Group charted a positive turnaround with stronger results compared to the previous quarter (“Q2 FY2023”) as well as the same quarter of the previous year, which saw a loss after tax and minority interests of RM3 million and RM669 million, respectively. The Group achieved an 8.7 percent increase in revenue for Q3 FY2023 of RM1.28 billion from RM1.1 billion in Q2 FY2023. This was mainly driven by the progress of ongoing projects, which contributed RM198 million, alongside a termination settlement of RM65 million.
The Group’s cumulative revenue for the first three-quarters of FY2023 is RM3.3 billion, while cumulative EBITDA at RM808 million, and PATAMI stands at RM100 million. Both the Operations & Maintenance and Drilling business segments registered positive EBITDA margins of 23 percent and 42 percent, respectively.
Group Chief Executive Officer Datuk Mohd Anuar Taib said, “While there is still much more to do, we are pleased to record another quarter of improved results as we continue the momentum and press ahead with the implementation of our Reset Plan.” Our priorities are clear. We are focused on improving the Group’s cashflow and EBITDA, as well as strengthening our risk management and operations for long-term sustainability. At the same time, weare fully cognisant of the pivotal importance of addressing our unsustainable debt, which we will continue to make every effort to resolve with all relevant stakeholders.”
As part of its efforts to improve overall cash flow, the group is reviewing underperforming contracts as well as renegotiating commercial settlements with customers. However, it is facing drawback in efforts to rebuild its order book, given the limited access to bank guarantees and working capital facilities during its restructuring phase, impacting the Engineering & Construction and O&M business segments. Its Drilling arm, however, recorded strong growth with 10 out of the 11 rigs fully operational at the end of Q3 FY2023. The Group’s order book currently stands at approximately RM6.8 billion. Separately, the non-consolidated order book of the Group’s joint venture entities is approximately RM5.7 billion.
To date the Group completed the disposal of three drilling rigs as part of its rationalisation plan.
