Date: 13.12.2023.

Kuala Lumpur, 13 December 2023

Summary of Q3 FY2024 financial results:

  • Revenue of RM1.10 billion
  • EBITDA of RM211 million
  • PATAMI of RM31 million
  • Order book at RM5.4 billion

Sapura Energy Berhad (“Sapura Energy”) and its subsidiaries (“the Group”) today announced financial results for the third quarter ended 31 October 2023 (“Q3 FY2024”), extending the positive performance shown since the beginning of the financial year. In the quarterly results, the Group posted a profit after tax and minority interests (“PATAMI”) of about RM31 million, on the back of earnings before interest, taxes, depreciation, and amortisation (“EBITDA”) of RM211 million, and revenue of RM1.10 billion.

For the first nine-months ended 31 October 2023 (9M FY2024), the Group posted a revenue of RM3.2 billion. Cumulative PATAMI more than doubled to RM220 million in 9M FY2024 compared with about RM100 million in the same period of financial year 2023 (“9M FY2023”).

Sapura Energy had recorded profits for three consecutive quarters in financial year 2024 (“FY2024”), despite multiple operational challenges. These challenges include escalating project and financing costs, as well as the lack of access to bank guarantees and working capital. These effects were more than offset by favourable foreign exchange differences recognised during the same period.

"Financial constraints clipped our ability to improve business performance, particularly in terms of order book replenishment. While we work to resolve the financial limitations through a regularization plan, there is also a critical need to bolster Operational Excellence, to preserve project margins and drive consistent results,” said Group Chief Executive Officer Datuk Mohd Anuar Taib.

Nevertheless, Datuk Anuar is confident of Sapura Energy’s growth prospects, in line with its strategy to rebalance its global portfolio and deploy key assets to regions where it can be competitive.

“To capitalize on opportunities across all our business segments, we are bidding right on major projects in Africa, the Mediterranean, the Atlantic, and the Asia Pacific regions. Trusted partnerships with clients and peers have helped us navigate challenges related to limited liquidity, enabling us to win more work.”

Currently, more than 70 percent of its order book are for contracts outside of Malaysia. As of the third quarter of FY2024, the Group’s Order Book stood at RM5.4 billion while the Order Book of its joint venture and associate entities stood at RM3.6 billion. Ten of its rigs are currently under contract in Malaysia, Thailand, and Africa.  Sapura Energy recently opened a regional office in Woking, United Kingdom, to manage and pursue projects in West Africa and the Mediterranean.

Meanwhile, the Group continues to progress its restructuring plan, which includes efforts to resolve its unsustainable level of debt and amounts owed to trade creditors. Sapura Energy has received confirmation from the Corporate Debt Restructuring Committee that at least seventy-five percent (75%) of the financiers of its approximately RM 10.3 billion in Multi-Currency Financing Facilities (“MCF Financiers”) have provided the requisite approval-in-principle for a proposed debt restructuring scheme (“PRS”). The approval in principle will facilitate court-convened meetings with all its creditors.

“This important milestone will then allow us to develop a regularization plan and address our status as company under Practice Note 17,” said Datuk Anuar. “More importantly, it will help us to finally offer a fair and equitable resolution to our creditors, including the many who are small and medium Malaysian vendors.”

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.