Latest news with #ProposedRegularisationPlan
New Straits Times
14-05-2025
- Business
- New Straits Times
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.
BusinessToday
02-05-2025
- Business
- BusinessToday
Capital A's Auditors Flag Material Uncertainty Over Going Concern
Capital A Berhad has announced that its external auditors, Ernst & Young have issued an unqualified audit opinion on the company's audited consolidated financial statements for the financial year ended 31 December 2024. However, this opinion includes a 'material uncertainty related to going concern' paragraph. This disclosure, made pursuant to the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, highlights significant doubt regarding the Group's and the Company's ability to continue as a going concern. The material uncertainty stems from the fact that, as of the date of the audit report, key milestones related to the company's Proposed Disposals remain incomplete. These include obtaining necessary approvals from government entities, financiers/lenders, and third parties for both Capital A and AirAsia X Berhad (AAX). Additionally, AAX has yet to raise RM1.0 billion as part of these disposals. Capital A had previously announced a Proposed Regularisation Plan on 24 October 2024, involving a proposed reduction of its issued share capital of up to RM6.0 billion. This plan received approval from Bursa Securities on 7 March 2025. A circular to shareholders and notice to holders of redeemable convertible unsecured Islamic debt securities (RCUIDS) concerning the plan was issued on 15 April 2025. Extraordinary general meetings to seek shareholder and RCUIDS holder approval are scheduled for 7 May 2025. The company stated that the material uncertainty highlighted by the auditors is linked to the ongoing implementation of both the Proposed Disposals and the Proposed Regularisation Plan. Capital A anticipates that the concerns leading to the 'material uncertainty related to going concern' paragraph will be resolved upon the fulfillment of the remaining conditions precedent for the Proposed Disposals, which are expected to be completed by the second quarter of 2025, barring any unforeseen circumstances. Related
