Kuala Lumpur, 27 March 2025

Summary of FY2025 financial results: 

• Revenue of RM4.7 billion 
• EBITDA of RM524 million 
• PATAMI of RM190 million 
• Group Order Book stands at RM8.5 billion 

Sapura Energy Berhad ("SEB”) and its subsidiaries ("the Group") today announced its unaudited full year results for the financial year ended 31 January 2025 ("FY2025"), marking its first return to profitability in six years. This financial performance demonstrates the Group’s operational resilience and the results of its restructuring and turnaround efforts, indicating a clear pathway towards long-term sustainability. 

FY2025 revenue stood at RM4.7 billion, increasing by 8.9 percent or RM385 million, compared to the previous financial year, primarily due to higher revenue from the Engineering & Construction (“E&C”) and Operations & Maintenance (“O&M”) segments.  

The Group recorded Earnings Before Interest, Tax, Depreciation, and Amortisation (“EBITDA”) of RM524 million in FY2025, while Profit After Tax and Minority Interest (“PATAMI”) stood at RM190 million, a significant improvement from the Loss After Tax and Minority Interest (“LATAMI”) of RM509 million in FY2024.  

Reset Plan delivering results 

“We are thankful to be back in the black after several challenging years,” said Muhammad Zamri Jusoh, SEB Group Chief Executive Officer. “Implementing the Reset Plan was an arduous task, but I am confident the worst is over for SEB. Nevertheless, we still have a few more corners to turn before we see our PN17 exit.”  

SEB’s Reset Plan includes addressing its unsustainable debt and resolving overdue claims from trade creditors, improving bidding and project delivery by derisking its order book in line with capabilities and risk appetite, and implementing a robust financial framework to ensure financial discipline and sustainable cost management. 

Since launching the Reset Plan about three years ago, the Group has been able to sustain its annual revenue above RM4 billion, despite challenges in obtaining working capital and bank guarantees. Improved financial discipline and cost visibility ensured the Group maintained a healthy cash flow. 

SEB’s concerted efforts to strengthen its enterprise risk management is evident in its Group order book profile, which has transformed in the last few years. The Group implemented a deliberate business development strategy that shifted from high-risk, lump-sum EPCIC projects to lower-risk, day-rate or reimbursable contracts such as drilling services, operations & maintenance, and transportation & installation.   

Debt restructuring exercise on track 

A core component of SEB’s Reset Plan is its debt restructuring exercise, which saw significant progress in FY2025. During the year, the Corporate Debt Restructuring Committee (“CDRC”) confirmed that the majority of its Multi-Currency Financing (“MCF”) financiers provided their Approval-in-Principle (“AIP”) for SEB’s Proposed Restructuring Scheme, demonstrating strong support from the MCF financiers.  

In February 2025, Scheme Creditors overwhelmingly approved the Composite Scheme of Arrangement (“Schemes”), which was subsequently sanctioned by the High Court of Malaya. The Schemes will enable the Group to resolve overdue payables to vendors and restructure its multi-currency borrowings with its financiers.  

The proposals under the Schemes include repaying Malaysian and essential vendors in full within 90 days of the Restructuring Effective Date, which is expected to fall in August 2025. Unsecured creditors under the Scheme have agreed to a settlement involving a seven percent haircut, debt-to-equity conversion, partial repayment through proceeds from the disposal of the Group’s 50 percent stake in SapuraOMV Upstream Sdn Bhd (“SOMV”), and a reduced sustainable debt of RM5.2 billion, at a fixed interest rate of 4.5 percent over an 8-year tenure.   

SEB completed the divestment of its 50 percent stake in SOMV in December 2024, which generated RM2.6 billion in proceeds.  The proceeds are earmarked for partial repayment of debts to unsecured creditors, as described above. MCF Financiers are included in the unsecured creditors class under the Scheme. 

In March 2025, SEB secured a conditional funding agreement from Malaysia Development Holding Sdn Bhd (“MDH”) for the subscription of up to RM1.1 billion in Redeemable Convertible Loan Stocks (“RCLS”), the proceeds of which will be exclusively utilised to pay Malaysian vendors in the oil and gas ecosystem. The RCLS are collateralised with SEB’s key assets in the E&C and O&M segments.  

Operational resilience and business segment performance 

The Engineering & Construction (“E&C”) segment achieved an EBITDA of RM428 million, reflecting a turnaround from previous losses due to improved project execution and successful contractual settlements. The team recently completed notable projects in Congo, Australia, Brazil, Thailand and Malaysia.  

In FY2025, the segment’s joint venture in Brazil, Seagems Solutions Ltda (“Seagems”) contributed RM342 million in share of profit to the Group. Additionally, Seagems was awarded long-terms contracts to provide subsea engineering, installation and other services in Brazilian waters, using its full fleet of six multi-purpose Pipelay Support, during the same year. 

The Drilling segment contributed an EBITDA of RM399 million at a healthy margin, reinforcing its role as a key earnings driver for the Group. The segment maintained a high rig technical utilisation rate of more than 95 percent, securing new contracts across Asia Pacific and West Africa. Drilling was recently awarded several contracts amounting to RM3.2 billion, including awards from PTTEP Energy Development Limited, EnQuest Petroleum Production Malaysia Ltd, ExxonMobil Exploration and Production Malaysia Inc., as well as a contract extension from Cabinda Gulf Oil Company Limited, a subsidiary of Chevron.  

The Group’s Operations & Maintenance (“O&M”) segment had a successful year, growing its EBITDA six-fold from RM23 million in FY2024 to RM144 million in FY2025.  EBITDA margins also improved accordingly. The improved performance was achieved by rebuilding trust with existing clients through operational excellence, expanding its regional presence; and improving its bottom line through close monitoring of cash flow and costs.  

In the year, the segment’s wholly-owned subsidiary Sapura Subsea Services Sdn Bhd secured several major long-term awards under the Pan Malaysia Inspection Repair Maintenance (“IRM”) umbrella contracts for PETRONAS Group of Companies and Malaysia Production Arrangement Contractors. The awards were for the provision of various underwater services, as well as subsea inspection, maintenance and repair related to facilities in Sabah and Sarawak waters. The segment’s HUC business also secured a long-term Integrated Hook-Up and Commissioning (“iHUC”) contract from PETRONAS.  

Meanwhile, O&M’s vessel Sapura Wira completed geotechnical campaigns for two clients in Thailand, marking the segment’s first foray outside Malaysia. The O&M segment will continue to expand its service offerings in the regional market, moving forward.  

Strategic growth and future outlook 

Looking ahead, SEB is well-positioned to sustain its recovery momentum. Its Group order book stands at RM8.5 billion, the highest level achieved in the past few years, while its share in the order book held by joint ventures and associate entities amount to an additional RM5.5 billion.  

Following the Court Order approving SEB’s Composite Scheme of Arrangement, the Group is now finalising its Regularisation Plan, which will enable the Group to exit PN17 status. “Our aim is to rebuild SEB as a long-term partner in the oil and gas industry, supporting the nation’s energy security and economic growth,” concluded Muhammad Zamri. 

Cautionary note: “Sapura Energy”, “the group” and “the company” are used for convenience where references are made to Sapura Energy Berhad in general. Similarly, words like “we”, “us” and “our” are used to refer to Sapura Energy Berhad in general or to those who work for the company and its subsidiaries, where relevant. This press release may contain forward-looking statements. All statements other than statements of historical facts included in this press release, including, without limitation, those regarding our financial position, financial estimates, business strategies, prospects, plans and objectives for future operations, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which we will operate in the future. Such forward-looking statements reflect our current view with respect to future events and are not a guarantee of future performance. Forward-looking statements can be identified by the use of forward-looking terminology such as the words “may”, “will”, “would”, “could”, “believe”, “expect”, “anticipate”, “intend”, “estimate”, “aim”, “plan”, “forecast” or similar expressions and include all statements that are not historical facts.