SAPURA Resources Bhd saw a net loss of RM8.6 million for the third quarter of the financial year 2025 (Q325), a slight increase from the RM8.2 million loss reported in the same period last year.

The loss was primarily attributed to the recognition of interest on redeemable convertible secured loan stocks (RCSLS), which were issued to settle a RM168 million debt owed to Jurudata Sdn Bhd (JSB).

The RCSLS, which will mature in nine years, was issued as part of the company’s efforts to address its debt obligations after struggling to meet lease payment commitments to Impian Bebas Sdn Bhd (IBSB).

The advances from JSB, received between September 2022 and November 2023, were used to cover the lease arrears related to the master lease agreement for the Permata Sapura office tower.

JSB is predominantly owned by Sapura Technology Bhd (92.18%) and Teledata Sdn Bhd (7.82%).

Despite the net loss, Sapura Resources reported a significant increase in its revenue for the three months ended October 31, 2024.

Revenue surged by 48.9% to RM20.1 million, up from RM13.5 million in the same quarter last year.

The growth was largely driven by a substantial increase in the occupancy rate of Permata Sapura, which rose from 16% to 92% during the period under review.

In the investment holding segment, the company saw a decline in profit before tax to RM1.9 million in Q325 from RM4.5 million in Q324.

The decrease was mainly due to a reversal of a provision for doubtful debts in FY2024, offset by lower operating expenditures, particularly in personnel costs, repair and maintenance, and office-related expenses.

Its property investment segment saw significant revenue growth to RM15.2 million in Q325 from RM6.9 million in Q324, thanks to the improved occupancy rate of Permata Sapura.

The segment’s loss before tax narrowed to RM13.8 million in Q325 from RM15.8 million in Q324, due to the higher revenue in Permata Sapura, although this was partially offset by the recognition of interest on RCSLS.

The aviation segment reported a decrease in revenue to RM4.6 million in Q325 from RM6.6 million in Q324, driven by lower subscription fees and fuel costs.

However, the segment turned profitable, recording a profit before tax of RM7.1 million in Q325, compared to a loss of RM1.1 million in the previous year.

This improvement was mainly attributed to the reversal of provisions for contingencies.

For the nine-months period, the group’s net loss decreased to RM36.2 million from RM47.5 million, with revenue grew to RM57.3 million from RM39.2 million.

Sapura Resources did not issue a profit forecast for the current financial period.

However, the company remains optimistic about the contributions from its property and aviation segments, which are expected to continue driving revenue growth.

The group noted its commitment to adapting to changing market conditions and ensuring long-term sustainability.

The group said that the recent completion of a capital-raising exercise has bolstered the company’s balance sheet, positioning Sapura Resources to enhance its existing businesses and explore new growth opportunities. –TMR