KUALA LUMPUR (June 30): Practice Note 17 (PN17) company Sapura Energy Bhd (KL:SAPNRG) said challenges in its engineering and construction (E&C) project in Angola, coupled with higher operating expenses, have pushed the upstream oil and gas contractor back into the red in its latest quarter.
In a bourse filing, the group reported a net loss of RM477.96 million for the first quarter ended April 30, 2025 (1QFY2026), compared to a net profit of RM82.13 million a year earlier. The loss was mainly attributed to an increased operating loss of RM444.3 million, driven by higher costs from ongoing E&C projects.
Quarterly revenue fell 31.88% to RM801.37 million from RM1.18 billion in 1QFY2025, mainly due to the challenging E&C project in Angola, which contributed to lower revenue from the E&C segment. The decline was also attributed to lower activity levels across the operations and maintenance (O&M) and drilling segments due to project completions and seasonal factors.
“This quarter reflects the timing mismatch between cost and revenue recognition, particularly in the E&C segment," group chief executive officer Muhammad Zamri Jusoh said in a statement. "We expect a gradual rebound in the coming quarters.”
The group expects its financial performance to improve in the coming quarters, driven by progressive revenue recognition from ongoing E&C projects and the commencement of new contracts for certain drilling rigs.
Sapura Energy said its RM7.9 billion order book provides revenue visibility, further supported by an additional RM4.8 billion, representing the group’s 50% share of the non-consolidated order book held by its joint ventures and associates.
The group added that its E&C and O&M segments are actively pursuing new opportunities, focusing on transportation and installation, subsea inspection, repair and maintenance, and decommissioning activities.
As part of these efforts, the group said it is also working to expand its O&M segment beyond Malaysia by targeting regional opportunities to further strengthen and diversify its order book.
On its PN17 exit plans, Sapura Energy said the restructuring process remains on track and has entered its final stages. The proposed regularisation plan is currently being refined based on feedback from Bursa Securities and the Securities Commission Malaysia. The restructuring effective date is targeted for August 2025 or, at the latest, the longstop date of March 11, 2026.
Shares of Sapura Energy closed half a sen or 12.5% lower at 3.5 sen, giving the group a market capitalisation of RM643.2 million. The counter has risen 16.67% year-to-date.
Uploaded by Arion Yeow