KUALA LUMPUR (March 30): Vantris Energy Bhd (KL:VANTNRG) has achieved a turnaround in operating profit in its latest fourth-quarter results, marking a crucial step towards the company's target to exit its Practice Note 17 (PN17) status.
It recorded an operating profit of RM142.4 million for the fourth quarter ended Jan 31, 2026 (4QFY2026), reversing a loss of RM104 million a year in 4QFY2025, a bourse filing on Monday showed.
Vantris Energy, formerly known as Sapura Energy Bhd, said it aims to exit its PN17 status by delivering two consecutive quarters of profitability, sustaining operational momentum, and reinforcing shareholder confidence. It also noted that its direct exposure to West Asia remains limited, though it is still closely monitoring geopolitical developments there.
Its 4QFY2026 recovery was driven largely by lower loss provisions for a project in Angola, reduced finance costs of RM134.5 million following the group's restructuring, and lower impairment charges on property, plant and equipment and goodwill amounting to RM197.1 million.
Headline net profit for the quarter, however, fell 58.8% to RM167.04 million from RM405.68 million a year ago, largely due to the absence of a RM792.1 million gain from the disposal of SapuraOMV Upstream Sdn Bhd that was booked in 4QFY2025.
Quarterly revenue declined 24.5% to RM895.9 million from RM1.19 billion. This reflected weaker contributions from the engineering and construction (E&C) segment after completing major projects, with slower progress on ongoing work. This was partly offset by stronger performance in drilling, which benefitted from higher rig utilisation and improved charter rates, while operations and maintenance (O&M) revenue remained stable.
The group’s consolidated order book stood at RM6.7 billion as at Jan 31, 2026, down from RM8.5 billion a year earlier. Management said this reflected a "deliberate transition" away from large, high-risk projects towards balanced-risk contracts. They expect replenishment to accelerate in FY2027, with a focus on lower-risk, margin-accretive contracts.
For the full FY2026, Vantris Energy reported a net profit of RM3.73 billion, sharply higher than RM189.53 million in FY2025. The surge was primarily driven by a one-off recognition of over RM4 billion in debt forgiveness under its restructuring plan. Full-year revenue fell 20.4% to RM3.74 billion from RM4.7 billion.
Group chief executive officer Muhammad Zamri Jusoh said FY2026 marked an inflection point for the group, with the restructuring strengthening its balance sheet and reducing debt. “Our focus now turns squarely to disciplined execution, as we address the substantial operational priorities ahead.”
By segment, drilling remained the strongest performer with an operating profit of RM132 million, benefitting from higher charter rates and steady demand, while O&M delivered operating profit of RM55 million, underpinned by higher activity levels. E&C posted narrowed operating losses of RM41 million in 4QFY2026, supported by an order book of RM2.8 billion and a pipeline of Asia-Pacific projects.
Joint ventures contributed RM481 million in profit share for the year, led by Brazilian unit Seagems Solutions Ltda and Malaysian-based Sapura Baker Hughes TPS Sdn Bhd, which renewed its partnership with Baker Hughes in June 2025.
Completion of Vantris Energy’s regularisation plan has materially strengthened the group's finances. Shareholders’ equity has turned positive while total borrowings have been slashed to RM5.48 billion — as at end-January this year — from RM10.76 billion a year earlier.
Trade and other payables also fell sharply to RM1.97 billion from RM6.12 billion, with all overdue payments to Malaysian ecosystem vendors having been settled under a scheme of arrangement.
“We are grateful to all stakeholders — our shareholders, lenders, vendors, employees and regulators — whose support and patience made this financial restructuring possible,” Zamri added. “We now have a foundation to focus fully on operational performance and delivering value.”
Shares in Vantris Energy closed up half a sen or 1.4% at 37.5 sen on Monday, valuing the company at RM857.76 million. Over the past year, the stock has tumbled over 62%.