KUALA LUMPUR: Sapura Energy Bhd has recorded a net profit of RM10.18 million in the third quarter ended Oct 31, 2022 (Q3) compared with a net loss of RM669.34 million recorded in the same quarter a year ago.

The improvement in earnings was due to lower recognition of provision for foreseeable losses, lower project costs recognised, lower depreciation, higher share of profit from associates and joint-ventures (JV), and a favourable foreign exchange gain.

Revenue for the quarter under review declined 12.4 per cent to RM1.28 billion from RM1.46 billion previously.

"The lower revenue in the corresponding quarter of the preceding year was due to a drop in revenue recognised from the engineering and construction (E&C) business segment due to a lower percentage of the completion of projects executed," it said in a filing to Bursa Malaysia.

In a separate statement, group chief executive officer Datuk Mohd Anuar Taib said while there is still much more to do, Sapura Energy is pleased to record another quarter of improved results as it continues the momentum and press ahead with the implementation of the Reset Plan.

"Our priorities are clear, we are focused on improving the group's cashflow and earnings before interest, taxes, depreciation, and amortisation, as well as strengthening our risk management and operations for long-term sustainability," he said.

Mohd Anuar also said the group is committed to continuing its review of underperforming contracts as well as renegotiating commercial settlements with customers.

"Sapura Energy faces a drawback in efforts to rebuild its order book, given the limited access to bank guarantees and working capital facilities during its restructuring phase, particularly impacting the E&C and operation and maintenance business segments.

The group's order book currently stands at approximately RM6.8 billion, while the non-consolidated order book of the group's JV entities is about RM5.7 billion.

Following the Corporate Debt Restructuring Committee of Malaysia's (CDRC) agreement to assist Sapura Energy in mediating its debt restructuring with lenders, the group submitted a draft Proposed Restructuring Scheme to the CDRC on Sept 29, 2022.