Kuala Lumpur, 30 June 2025
Summary of Q1 FY2026 financial results:
• Revenue: RM801 million
• LBITDA: RM275 million
• LATAMI: RM478 million
• Unrestricted cash balance: RM1.85 billion
• Group Order Book: RM7.9 billion
Sapura Energy Berhad (“SEB” or “the Company”) and its subsidiaries (“the Group”) today announced its financial results for the first quarter ended 30 April 2025 (“Q1 FY2026”).
For the quarter under review, the Group recorded a revenue of RM801 million, a loss before interest, tax, depreciation and amortisation (“LBITDA”) of RM275 million, and a loss after tax and minority interest (“LATAMI”) of RM478 million.
The Q1 FY2026 performance was mainly impacted by foreseeable losses relating to a challenging Engineering & Construction ("E&C") project in Angola, along with lower activity levels across other segments.
The Drilling segment saw lower activity in Q1 FY2026, as its rigs were transitioning between projects, while activities in the Operations & Maintenance (“O&M”) segment were affected by seasonal factors.
The Group expects its financial performance to improve in the coming quarters, supported by progressive revenue recognition from ongoing E&C projects and the redeployment of drilling rigs under newly secured contracts.
Group Chief Executive Officer Muhammad Zamri Jusoh said, “This quarter reflects the timing mismatch between cost and revenue recognition, particularly in the E&C segment. What’s more important is that the underlying operations continue to deliver progress, and we expect a gradual rebound in the coming quarters.”
Business Segment Highlights
Engineering & Construction (E&C)
The E&C segment recorded an LBITDA of RM296 million, largely dragged by foreseeable losses associated with a challenging project in Angola. The segment’s performance in the current quarter was also impacted by the natural tapering of completed projects. The Group is executing contracts across the Asia Pacific, Africa and the Americas and remains focused on selective bidding, risk controls and commercial recovery efforts.
Operations & Maintenance (O&M)
EBITDA for the O&M segment stood at RM24 million, softer compared to the same quarter last year (“Q1 FY2025”). This is due to the absence of favourable claim settlements that had boosted earnings in Q1 FY2025. Nevertheless, the segment sustained a healthy EBITDA margin of 21 percent, supported by continued cost discipline and active pursuit of new opportunities in key regional markets.
Drilling
The Drilling segment posted an EBITDA of RM51 million, impacted by lower rig utilisation following recent contract completions. Several rigs, including Sapura Esperanza, Berani, T-18 and T-17 were in between contracts preparing for redeployment. Looking ahead, the segment expects improved earnings following the execution of multiple new contracts from several clients including PTTEP, CABGOC, ExxonMobil and EnQuest.
Progress in the Reset Plan
The Group’s restructuring efforts remain on track and have entered the final stages. In May 2025, SEB submitted an application in relation to its Proposed Regularisation Plan (“PRP”) to Bursa Securities Malaysia Berhad (“Bursa Securities”), aimed at facilitating its exit from Practice Note 17 (“PN17”) status and return to a stronger financial and operational standing. The PRP is currently undergoing refinement following feedback from Bursa Securities and the Securities Commission.
The plan includes these key components:
• Capital Reconstruction: A 99.99 percent capital reduction to eliminate accumulated losses, and a 20-to-1 share consolidation to enhance share price stability and improve market perception.
• Debt Restructuring: Total borrowings will be reduced from approximately RM10.8 billion to RM5.6 billion, significantly lowering interest expenses and easing the Group’s financial burden. This will be achieved through a combination of debt-to-equity conversion, settlement shares, and the introduction of long-term, sustainable debt instruments.
• Strategic Fund-Raising: Malaysia Development Holding Sdn. Bhd. has agreed to subscribe up to RM1.1 billion in redeemable convertible loan stocks, with proceeds earmarked for the settlement of outstanding payments to vendors in the Malaysian oil and gas ecosystem. This initiative not only supports SEB’s recovery but also reinforces the resilience of the nation’s energy industry.
With the Restructuring Effective Date targeted for August 2025, or latest by the Longstop Date (i.e. 11 March 2026), the Group is set to conclude one of the most complex restructuring exercises in the country’s history, marking a defining moment that will strengthen its financial position and accelerate its operational turnaround.
Strategic and Financial Outlook
As part of its financial turnaround, SEB continues to pursue balance sheet realignment and its operational turnaround. The Group’s unrestricted cash balance stood at RM1.85 billion as at 30 April 2025, underpinning business continuity while Sapura Energy advances its restructuring journey. The Group’s RM7.9 billion orderbook provides revenue visibility, with an additional RM4.8 billion representing its 50 percent share in the non-consolidated order book held by joint ventures and associates.
The Group is repositioning its E&C segment to align with shifting industry dynamics. This includes optimising the deployment of key assets - such as Sapura 3500 and Sapura 1200 - to regions with stronger market demand.
In tandem, SEB’s Drilling segment aims to capitalise on its market leadership in tender-assist drilling solutions, by broadening its global reach, with strategic focus on Southeast Asia and Africa.
The Group is also pursuing the expansion of its O&M segment beyond Malaysia, actively targeting regional opportunities to strengthen and diversify its order book.
“This is a transitionary phase for Sapura Energy,” Zamri added. “We are focused on protecting value while positioning ourselves for future resilience. Despite a challenging start to the financial year, we remain committed to restoring stakeholder confidence and delivering sustainable outcomes.
About Sapura Energy Berhad
Sapura Energy Berhad (SEB) is a global integrated energy services and solutions provider operating across the entire upstream value chain, including renewables. The Group’s spectrum of capabilities covers exploration, development, production, rejuvenation, decommissioning and abandonment. With a highly skilled and technically capable workforce, strategic world-class assets, and strong project management capabilities, the Group today delivers its integrated solutions and expertise in over 20 countries.
For further editorial information, contact:
Sapura Energy Corporate Communications at corpcomms@sapuraenergy.com
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