Revenue increased by 11.0% to RM4.55 billion from RM4.10 billion previously, mainly contributed by higher revenue from the drilling and operations and maintenance (O&M) segments which is attributable to higher rig utilisation days in the current year and higher approved claims.
For the fourth quarter of 2023 (4Q 2023), the company halved its net loss to RM3.30 billion from RM6.77 billion and revenue surged to RM1.22 billion from RM426.60 million in the same quarter last year.
In a statement today, Sapura Energy said the full-year results for FY2023 showed noteworthy progress in its efforts to regain operational stability.
The group noted that it posted an operating profit of RM705 million, a quadruple increase compared to the operating loss of RM2.2 billion recorded in FY2022, with all business segments excluding corporate posted positive earnings before interest, taxes, depreciation and amortisation (Ebitda) during the period under review.
Sapura Energy booked a total group Ebitda of RM667 million, mainly contributed by its drilling segment which achieved an Ebitda of RM476 million.
The O&M segment recorded a positive Ebitda of RM143 million while engineering and construction recorded an Ebitda of RM155 million, the group said.
Group CEO Anuar Taib said that the teams delivered significant operational improvements in the face of considerable challenges last year.
“Relying on trusted partnerships and resourceful capabilities, we found ways to self-sustain and maintain safe, steady performance thus setting a firm base for our future growth.
“It is crucial that we revive Sapura Energy’s access to credit lines to remain competitive in the current and emerging markets. Reducing our unsustainable debt will go a long way in improving that financial ability,” he said.
The group also shared that among the major hurdles that it faced include the lack of working capital and the unavailability of bank guarantees, following the suspension of Sapura Energy’s working capital facilities in October 2021.
The curtailment resulted in missed tender opportunities for the group, with an estimated value of US$2.5 billion (RM11.05 billion), it said.
Sapura Energy said it had retained its competitiveness as a global player amid these challenges with more than 70% of its FY2023 revenue coming from international contracts, as it completed 45 projects for various clients during the year.
“The group continued to win new work, which amounted to about RM3.7 billion in value, bringing its current order book to RM5.6 billion. In addition, the non-consolidated gross order book of the group’s joint-venture entities stands at RM5.2 billion.
“All 11 of its rigs are currently under contract in Malaysia, Thailand, Brunei and West Africa,” it noted.
Elaborating on its narrowed net loss for FY2023, the group said it included RM2.6 billion in impairment charges, of which nearly RM1.5 billion is related to goodwill on consolidation while profitability was also impacted by higher foreign exchange losses in 4Q, as the ringgit strengthened against the US dollar.
The group also noted that in the last 12 months, Sapura Energy took large strides to progress its debt restructuring plan and will continue to implement its reset plan to address unsustainable debt and resolve overdue claims by trade creditors.
“Building on the positive momentum achieved in the last financial year, Sapura Energy is determined to extend the turnaround in its operations to FY2024,” Anuar said.
In another filing with Bursa Malaysia today, the group has appointed MIDF Amanah Investment Bank as the principal adviser to help formulate a regularisation plan to get out of its practice note 17 (PN17) status.
“The group is developing its regularisation plan to address its PN 17 status, underpinned by the schemes of arrangement with lenders and creditors.” it stated.