Sapura Energy posts positive 4Q25 results

PETALING JAYA: Sapura Energy Bhd is confident that it is well-positioned to sustain its recovery momentum, given the group’s current RM8.5bil order book, the highest level achieved in the past few years.

Notably, Sapura Energy said following the Court Order approving its Composite Scheme of Arrangement, the group is now finalising its regularisation plan that will enable it to eventually exit its Practice Note 17 status.

Releasing its results for the financial year (FY25) and fourth quarter (4Q25) ended Jan 2025 yesterday, Sapura Energy saw its quarterly net profit swing around to RM405.7mil, from a loss of RM728.4mil a year ago, which translates to an earnings per share (EPS) of 2.21 sen.

This came as revenue also improved 6% year-on-year (y-o-y) to RM1.19bil.

Sapura Energy attributed the turnover increase primarily to its operations and maintenance (O&M) segment, driven by higher activity levels of projects, although this was offset by a decrease in the drilling segment, resulting from lower utilisation of rigs.

At the same time, the group said its profit turnaround was driven by its exploration and production segment, due to gain on disposal of SapuraOMV Upstream Sdn Bhd (SOMV) that amounted to RM792.1mil, as well as better performance from O&M and favourable settlement of claims.

“However, this was offset by higher impairment on goodwill and property, plant and equipment recorded in the current quarter,” said Sapura Energy in a filing with Bursa Malaysia.

For the whole of FY25, the group recorded net earnings of RM189.5mil, also bouncing back from a net loss of RM508.7mil in FY24, as revenue increased 9% y-o-y to RM4.7bil. This means for FY25, overall EPS was at 1.03 sen.

Sapura Energy said the improvement in turnover was attributed to the O&M segment, driven by commencement of new projects with higher activity levels, as its engineering and construction (E&C) division also saw revenue increase due to higher progress of existing projects and commencement of new projects.

The group credits its profitability in FY25 to better performance of the E&C and O&M segments, driven by higher activity levels of the projects and favourable settlement of claims, although it added that profits were offset by higher impairment on goodwill and property, as well as plant and equipment, amounting to RM120.5mil and RM88.5mill respectively.

“Foreign exchange losses were recorded in the current year of RM204.9mil due to weakening of the US dollar against the ringgit,” said Sapura Energy.

Compared to the preceding quarter ended Oct 31, 2024 (3Q24), the group jumped back to the black from a loss of RM293.1mil in 3Q23, as revenue edged up 2.9% from RM1.15bil.

The quarterly improvement was attributed to again on disposal from an associate (SOMV) amounting to RM792.1mil, higher foreign exchange gains as well as favourable settlement of claims.

Earlier this month, Sapura Energy announced that it had entered into a conditional funding agreement with Malaysia Development Holding Sdn Bhd, with the latter committing to invest up to RM1.1bil in redeemable convertible loan stock in the group.