Kuala Lumpur, 8 December 2022
Summary of Q3 FY2023 financial results:
- Revenue of RM1.28 billion
- EBITDA of RM246 million
- PATAMI of RM10 million
- Current order book at RM6.8 billion
Sapura Energy Berhad (“Sapura Energy”) and its group of companies (“the Group”) today announced its financial results for the third quarter ended 31 October 2022 (“Q3 FY2023”), recording profit after tax and minority interests (“PATAMI”) of RM10 million, on the back of positive earnings before interest, taxes, depreciation, and amortisation (“EBITDA”) 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 RM1.17 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 cumulative PATAMI stands at RM100 million.
Both the Operations & Maintenance (“O&M”) and Drilling business segments registered positive EBITDA margins of 23 percent and 42 percent, respectively.
PROGRESS IN RESET PLAN
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, we are 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, Sapura Energy is committed to continuing its review of underperforming contracts as well as renegotiating commercial settlements with customers.
Sapura Energy faces a drawback in efforts to rebuild its order book, given the limited access to bank guarantees and working capital facilities during its restructuring phase, particularly 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.
In line with its aim of portfolio rationalization, the Group recently completed the disposal of three drilling rigs to NKD Maritime Limited.
Following the Corporate Debt Restructuring Committee of Malaysia’s (“CDRC”) agreement to assist Sapura Energy in mediating its debt restructuring with lenders, the Group submitted a draft Proposed Restructuring Scheme (“PRS”) to the CDRC on 29 September 2022. It has since been participating in CDRC-mediated meetings with financial institutions to seek feedback on and to refine the terms of the PRS. This draft restructuring proposal will form part of the Group’s overall restructuring and regularisation plan, which upon finalisation will be submitted to Bursa Malaysia. Additionally, the Group is nearing the end of its Proof of Debt exercise with its trade creditors.
Cautionary note: “Sapura Energy”, “the group” and “the company” are used for convenience where references are made to Sapura Energy Berhad in general. Similarly, words like “we”, “us” and “our” are used to refer to Sapura Energy Berhad in general or to those who work for the company and its subsidiaries, where relevant. This press release may contain forward-looking statements. All statements other than statements of historical facts included in this press release, including, without limitation, those regarding our financial position, financial estimates, business strategies, prospects, plans and objectives for future operations, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which we will operate in the future. Such forward-looking statements reflect our current view with respect to future events and are not a guarantee of future performance. Forward-looking statements can be identified by the use of forward-looking terminology such as the words “may”, “will”, “would”, “could”, “believe”, “expect”, “anticipate”, “intend”, “estimate”, “aim”, “plan”, “forecast” or similar expressions and include all statements that are not historical facts.