Sapura Energy Bhd has reported a return to profitability for the first time in six years, posting a net profit of RM190 million for the financial year ended January 31, 2025 (FY25). This marks a significant turnaround from the previous financial year when the company recorded a net loss of RM509 million.
The group’s revenue increased by 8.9% year-on-year (YoY) to RM4.7 billion, reflecting improved performance across its core business segments. The audited financial statements for FY25, prepared by external auditors Messrs. Ernst & Young PLT (EY), received an unqualified audit opinion.
However, EY highlighted concerns regarding the company’s ability to continue as a going concern, noting that Sapura Energy’s current liabilities still exceed its current assets. The group continues to face severe liquidity challenges. Despite these concerns, the financial statements were prepared on a going concern basis, which EY stated is contingent on the timely approval, execution, and completion of the Proposed Regularisation Plan by the Long Stop Date of March 11, 2026. This plan is critical for the group’s schemes of arrangement (SOA), conditional funding agreements, and settlements related to previously terminated engineering and construction (E&C) projects.
The issue of going concern uncertainties is not new for Sapura Energy, having been flagged in the financial statements for FY2022, FY2023, and FY2024. Previous concerns included the need for restraining order extensions, favourable legal outcomes regarding E&C claims, and at least 75% creditor approval at court-convened meetings for the SOA.
Sapura Energy has achieved several critical milestones over the past few years, progressing towards finalising its regularisation plan. The group aims to make a formal submission to Bursa Malaysia by May 2025.
In a statement to Bursa, the board expressed confidence in the company’s future, highlighting that successful execution of key restructuring initiatives has established a strong foundation for completing the regularisation plan.
-Business Times
