KUALA LUMPUR (June 27): Sapura Energy Bhd’s (KL:SAPNRG) net profit shrank nearly 44% to RM82.13 million for the first quarter ended April 30, 2024 (1QFY2025) from RM146.09 million the year before, no thanks to a RM117.76 million loss resulting from the liquidation of a subsidiary.

In addition, the group’s foreign exchange gains came in much lower at RM52.4 million in 1QFY2025, compared with RM217.6 million a year ago.

Earnings per share contracted to 0.45 sen from 0.91 sen previously. However, quarterly revenue grew 23.6% to RM1.18 billion from RM951.73 million as a result of higher project progress in its engineering and construction segment.

The cash-strapped company did not declare any dividend for the quarter under review. It last paid a dividend of 0.5 sen per share in 2019.

Its net profit was in contrast to a net loss of RM728.44 million in the immediate preceding quarter. Revenue increased by 11.1% quarter-to-quarter from RM1.06 billion.

Sapura Energy’s order book currently stands at RM7.1 billion, up from RM3 billion previously. Looking ahead, the company remains committed to bidding for projects both in the Malaysian and international markets.

“The company is committed to regularising its financial position, with the ultimate goal of declassifying itself as a Practice Note 17 company,” Sapura Energy said in the result release, pointing to its plan to divest a 50% stake in SapuraOMV Upstream Sdn Bhd to TotalEnergies Holdings SAS, along with the High Court’s extension of the convening and restraining orders until March 10, 2025.

“Our strategy is to balance our income sources by focusing on both the Malaysian market and international projects. This approach has enabled us to deploy key strategic assets and expertise where it is most needed. It is part of our commitment to safely deliver solutions to clients and ultimately contribute to the provision of affordable energy to communities worldwide,” said Sapura Energy chief executive officer Datuk Mohd Anuar Taib in a statement in conjunction with the quarterly result announcement.

Shares of Sapura Energy fell 0.5 sen to 3.5 sen on Thursday, valuing the company at RM643.16 million.