Sapura Energy posts RM190mil profit in FY25, but going concern risks remain
KUALA LUMPUR: Sapura Energy Bhd has returned 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), compared to a net loss of RM509 million in FY24.
The group's revenue rose 8.9 per cent year-on-year (YoY) to RM4.7 billion, driven by improved performance across its core business segments.
The audited financial statements for FY25 were accompanied by an unqualified audit opinion from external auditors Messrs. Ernst & Young PLT (EY). However, EY highlighted a material uncertainty regarding the company's ability to continue as a going concern.
In its report, EY noted that the group's current liabilities still exceed its current assets and that Sapura Energy continues to face severe liquidity challenges.
Despite this, the financial statements were prepared on a going concern basis, which EY stated is contingent upon the timely approval, execution, and completion of the Proposed Regularisation Plan by the Long Stop Date of March 11, 2026. The plan is crucial for activating the group's schemes of arrangement (SOA), conditional funding agreements, and settlements tied to previously terminated engineering and construction (E&C) projects.
Similar going concern uncertainties were flagged in FY2022, FY2023, and FY2024. These concerns included the need for extensions of restraining orders, favourable legal outcomes related to E&C claims, and at least 75 per cent approval from scheme creditors at court-convened meetings for the SOA.
Over the past few years, Sapura Energy has met several critical milestones, enabling progress on finalising its regularisation plan. The group is targeting a formal submission to Bursa Malaysia by May 2025.
In a filing with Bursa, the board expressed confidence in the group's future, stating that the successful execution of key restructuring initiatives has laid a strong foundation for the completion of the regularisation plan.
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