KUALA LUMPUR: Sapura Energy Bhd reported a net loss of RM293.05 million for the third quarter ending October 31, 2024, a significant reversal from the RM30.88 million profit recorded in the same period last year, primarily due to unfavourable foreign exchange losses. Despite the net loss, the company saw a 4.4 percent increase in revenue, reaching RM1.15 billion compared to RM1.10 billion in the previous year’s third quarter, driven by strong performance in its engineering and construction, and operations and maintenance segments.
According to BERNAMA News Agency, the rise in revenue was attributed to the favourable settlement of claims and higher completion percentages for ongoing projects. Over the first nine months of its financial year ending January 31, 2025, Sapura Energy’s net profit was RM216.16 million, slightly down from RM219.78 million in the previous year. Revenue for the nine months increased to RM3.54 billion from RM3.20 billion in the corresponding period last year.
In a statement, Sapura En
ergy highlighted that while it maintains a natural hedge against foreign currency exposure at the operational level, the group is affected by unrealised foreign exchange losses stemming from its multi-currency financing facilities. Interim chairman Shahin Farouque Jammal Ahmad emphasized the need for restructuring the company’s debt portfolio to mitigate these financial risks. “We are actively working with lenders and creditors to accelerate this exercise and enhance the group’s financial stability and resilience for the future,” he stated.
Sapura Energy also reported it remains cash-generative, with RM252 million in free cash flow year-to-date in the financial year 2025, and an unrestricted cash balance of RM1.59 billion as of October 31, 2024. The group is set to focus on securing opportunities across all business segments, leveraging trusted partnerships to navigate liquidity challenges.
The company is advancing its restructuring plan, aiming to address its unsustainable debt levels and obligations to tr
ade creditors, signaling a strategic focus on long-term financial health and operational continuity.