Vantris Energy Berhad (formerly Sapura Energy Berhad)

Q4 FY2026 Financial Results & Extraordinary Corporate Developments

Date: 30 March 2026

Executive Summary

• Vantris Energy Berhad (VTEB) reported a dramatic turnaround for the financial year ended 31 January 2026, recording a Profit After Tax and Minority Interest (PATAMI) of RM3.73 billion, a significant improvement primarily driven by a one-off RM4.1 billion debt forgiveness as part of its landmark restructuring exercise.
• The Group emerged from a severe liquidity crisis after completing a comprehensive Regularisation Plan involving capital reduction, new fund-raising, and large-scale debt compromise. This strategic corporate action has restored the Group’s equity from negative to positive and significantly reduced finance costs moving forward.
• While revenues declined amidst the transition, core operations in Drilling and O&M returned to profitability, and the Group’s financial position has been reset for future growth.

Key Highlights of Q4 FY2026 and Full Year Results

• Revenue: RM895.9 million for Q4 FY2026, down 24.5% YoY; full-year revenue at RM3.74 billion, down 20.4% YoY due to completion of major Engineering & Construction (E&C) projects and lower progress on ongoing jobs.
• Profitability: Q4 PATAMI of RM167.0 million (down 58.8% YoY, primarily due to the absence of one-off gains in the prior year). Full-year PATAMI of RM3.73 billion driven by restructuring gains.
• Operating Profit: Swung from a loss of RM104.0 million in Q4 FY2025 to a profit of RM142.4 million in Q4 FY2026, reflecting improved operating performance and lower impairments.
• Finance Costs: Reduced significantly to RM168.7 million (FY2026) from RM863.5 million (FY2025) post-restructuring.
• Earnings Per Share (EPS): Basic EPS at 163.12 sen for FY2026 versus 1.03 sen in FY2025, reflecting the debt forgiveness and capital changes.

Major Corporate & Price-Sensitive Events

1. Comprehensive Regularisation Plan & Debt Restructuring

• Capital Reduction: The Group reduced its share capital by RM11.85 billion to offset accumulated losses, restoring positive equity and net assets per share to RM1.32 (previously negative RM0.19).
• Issuance of New Instruments:
  • Issued RM1.1 billion of Redeemable Convertible Loan Stocks (RCLS) to Malaysia Development Holding Sdn Bhd (MDH), a government-linked entity.
  • Issued 1.47 billion Redeemable Convertible Unsecured Islamic Debt Securities (RCUIDS) and 1.36 billion settlement shares to creditors.
  • Share consolidation: 18.4 billion shares consolidated into 918.8 million shares; 998.7 million warrants consolidated into 49.9 million (all lapsed by expiry).
• Forgiveness of Debt: RM4.1 billion recognised as a one-off gain in Q3 FY2026, the largest single driver of the Group’s turnaround.
• Restructuring Effective Date (RED): Achieved on 26 September 2025, after all conditions precedent were met. Settlement of liabilities with secured, preferred, and unsecured creditors involved a combination of cash, new securities, and substantial debt waivers.
• PN17 Exit Plans: The company’s immediate priority is to exit Bursa Malaysia’s Practice Note 17 (PN17) status by delivering two consecutive quarters of profitability.

2. Impact on Shareholders and Share Price

• Restoration of Positive Equity: After years of negative shareholders’ funds, the Group is now in a stronger financial position post-restructuring.
• Massive Share Capital Changes: The capital reduction and share consolidation mean that historical per-share values and EPS are not comparable to prior periods. Investors should consider the new capital base in their valuations.
• Potential Dilution: New shares and convertible instruments issued to creditors may dilute existing holdings if conversion rights are exercised.
• Government-Linked Support: The subscription by MDH (a vehicle controlled by the Minister of Finance, Incorporated) for RCLS enhances confidence in the Group’s long-term viability.

3. Operational Performance by Segment

• Engineering & Construction (E&C): Revenue down 33.2% YoY due to completion of large projects and lower progress on ongoing jobs. The segment posted a loss before tax of RM144 million for FY2026, compared to a profit last year. However, losses narrowed in Q4 due to lower provision for Angola projects and receipt of RM28.6 million insurance claims.
• Drilling: Segment returned to near break-even (loss before tax RM3 million, versus loss of RM250 million in FY2025) with higher rig utilisation and improved charter rates. Orderbook of RM2.6 billion supports outlook.
• Operations & Maintenance (O&M): Revenue up 6.3% YoY, with higher activity. Profit before tax RM123.5 million (up 2.5% YoY).
• E&P: Segment ceased operation post-disposal of SapuraOMV in FY2025.

4. Significant Legal and Arbitration Matters

• Sapura Energy do Brasil Ltda vs Centrais Elétricas de Sergipe S.A.:
  • On 14 January 2026, a partial award was issued in SE Brasil’s favour: SE Brasil is entitled to a net amount of BRL 13.1 million (~USD2.4 million) after set-off against CELSE’s counterclaims. Parties are exchanging submissions on clarification and costs. Final resolution could impact cash flow and reputation in Brazil.
• Sarku Engineering Services vs ONGC (India):
  • Prolonged legal proceedings continue. SESSB has strong grounds for appeal, with a First Award and Final Award for USD3.0 million and USD0.4 million, respectively. Hearing schedules continue into 2026.
• Petrofac (Malaysia) Limited vs Sapura Fabrication Sdn. Bhd.:
  • Arbitration stayed pending outcomes of the Scheme of Arrangement (SOA). Parties agreed to wait for SOA outcome before resuming.
• Brunei Shell Petroleum vs SFSB & SOSB:
  • Settlement agreement reached in January 2025 to resolve all claims outside the SOA, with ongoing SIAC arbitration to be stayed until settlement milestones are met.

5. Other Notable Events

• Change of Company Name: Effective 1 August 2025, Sapura Energy Berhad is now Vantris Energy Berhad (VTEB).
• Early Redemption and Lapse of Warrants: 17.8 million RCUIDS were redeemed early. All 49.9 million post-consolidation warrants lapsed unexercised by expiry (23 January 2026).
• Disposal of Joint Venture: Disposal of 40% stake in L&T Sapura Shipping Private Limited to L&T for RM54.9 million cash; VTEB recorded a RM37.0 million gain.
• Taxation: Group is within the scope of the OECD Pillar Two global minimum tax rules. Taxation for the year includes a RM37.9 million top-up for global minimum tax.

Balance Sheet & Liquidity

• Total Assets: RM10.99 billion (down from RM14.41 billion in FY2025, reflecting asset rationalisation and disposals).
• Total Equity: RM2.87 billion positive (from negative RM3.60 billion), driven by capital reduction and restructuring gains.
• Borrowings: Reduced from RM10.76 billion short-term (FY2025) to RM0.74 billion (FY2026) and RM4.74 billion long-term, reflecting debt restructuring.
• Cash & Bank Balances: RM2.25 billion, including RM0.5 billion pledged/restricted.
• Net Cash Used in Operations: Notably, the Group recorded net cash outflow from operations of RM1.47 billion, mainly due to negative working capital movements and taxes paid post-restructuring.

Outlook and Guidance

• E&C: Orderbook of RM2.8 billion and a healthy tender pipeline; expected to recover as it transitions to lower-risk contracts.
• O&M: Orderbook of RM1.3 billion; positive contribution expected due to higher activity and strategic opportunities.
• Drilling: Strong outlook with RM2.6 billion orderbook; higher charter rates and strong fleet utilisation.
• PN17 Exit & Profitability: Focused on sustaining profitability and operational momentum to exit PN17 status.
• Risks: Monitoring geopolitical risks, especially in West Asia, with limited direct exposure but ongoing assessment of supply chain and market impacts.
• Dividend: No dividend recommended for the current quarter.

Investor Takeaways

• The completion of the Regularisation Plan, massive debt reduction, and return to positive equity and profitability are transformational events for Vantris Energy Berhad, and likely to be price sensitive.
• Shareholders should closely monitor future quarters for sustained operational profit, progress on PN17 exit, and possible dilution from convertible instruments issued to creditors.
• Legal resolutions and collection of awarded claims could provide further upside, while ongoing arbitrations and global market volatility remain risks.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell securities. Investors should conduct their own independent research or consult their financial advisors prior to making any investment decisions regarding Vantris Energy Berhad. The information above is based on the company’s unaudited quarterly report for the period ended 31 January 2026, and future performance may differ materially from past results.

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