Vantris Energy, formerly known as Sapura Energy, has reported a significant financial turnaround for its third quarter, primarily driven by the completion of its financial restructuring. The company posted a profit after tax and minority interests (PATAMI) of 4.27 billion ringgit, reversing previous losses. This improvement is largely attributed to non-recurring accounting gains, including 4.47 billion ringgit from debt forgiveness. The restructuring reduced total borrowings from 10.76 billion to 5.70 billion ringgit, shifting the company from a net liability to a net asset position.

Operational Challenges Persist

Despite the financial gains, the company recorded an operational loss before interest, tax, depreciation, and amortisation of 150 million ringgit for the quarter. This was primarily due to issues with a specific project in its engineering and construction (E&C) segment, which negatively impacted the segment's performance. Vantris acknowledges the need to strengthen operational performance and is implementing measures to enhance operational excellence and focus on lower-risk opportunities to support a gradual recovery.

Segment Performance and Outlook

The operations and maintenance segment delivered steady performance, supported by stable activity levels. The drilling segment maintains a healthy outlook, benefiting from stable demand and firm charter rates, and is expected to continue contributing reliably to group performance. The company's current order book stands at 6.3 billion ringgit, with an additional 3.9 billion ringgit from joint ventures and associates. A recent significant contract win by its joint venture, Rawabi Sapura, with Saudi Aramco for diving support services underscores ongoing business development.

Strategic Priorities and PN 17 Status

Vantris's immediate strategic priority is to exit its Practice Note 17 (PN 17) status, which indicates severe financial distress and was triggered in May 2022. To achieve this, the company must deliver two consecutive quarters of profitability. The broader goals are to sustain operational momentum and reinforce stakeholder confidence as it moves toward long-term financial sustainability.