SAPURA Energy Bhd posted a net profit of RM91 million in the first quarter (Q1) ended April 30, 2022, against a net loss of RM97 million in the same period last year, mainly due to foreign exchange gain arising from the appreciation of the US dollar against the ringgit.

However, the firm said its revenue fell 39.7% to RM886 million in the same period from RM1.47 billion a year ago.

“The lower revenue is primarily due to lower project activities from the construction and engineering segments in the current quarter,” it said in a filing with Bursa Malaysia today.

Sapura Energy said as part of its holistic restructuring plan, it has negotiated with clients for amicable solutions to ensure project delivery.

Its profit after tax and minority interests in Q1 FY2023 is mainly derived from such efforts, having materialised via approved commercial settlements and favourable foreign exchange gains following the strengthening of the US dollar.

Sapura Energy group CEO Mohd Anuar Taib said the firm is seeing the first green shoots of recovery, following the implementation of its reset plan.

“(But) we still have significant hurdles to overcome before we can sustain this encouraging momentum.”

Sapura Energy is currently classified as a PN17 company. A regularisation plan, based on the reset plan initiated in December, is currently being formulated.

It will continue to execute project activities for the rest of the year, and has more than 50 ongoing projects across its business segments. – Bernama, June 27, 2022.