Vantris soars 32% on RM4.5bil debt forgiveness boost

Stock rallies after its Q3 net profit jumps to RM4.27 billion following a RM4.47 billion gain from debt forgiveness by its creditors.

BIMB Securities said Vantris Energy is on track to deliver the two consecutive profitable quarters needed for an exit from its Practice Note 17 status.

PETALING JAYA:

 Vantris Energy Bhd’s shares surged today after its bottom-line got a massive boost from the RM4.47 billion debt forgiveness it received from creditor banks following its financial restructuring.

The oil and gas services company jumped as much as 11.5 sen or 32% to 47.5 sen before closing at 46.5 sen, still up 10.5 sen or 29%.

This values the group, formerly known as Sapura Energy Bhd, at RM1.05 billion. It was one of the most actively traded counters on Bursa Malaysia with 30.2 million shares changing hands.

In an exchange filing yesterday, Vantris announced a net profit of RM4.27 billion for the third quarter ended Oct 31, 2025 (Q3 FY2026) from a net loss of RM293.06 million a year ago, after recognising the one-off RM4.47 billion gain from the debt forgiveness.

Stripping off this gain, it posted an operating loss of RM97.07 million for the quarter versus an operating profit of RM215.11 million a year earlier, as operating expenses rose 14.9% to RM1.08 billion.

Q3 revenue fell 14.8% to RM982.79 million from RM1.15 billion a year ago due to weaker contributions from its engineering and construction division.

For the nine-month period (M9 FY2026), it recorded a net profit of RM3.56 billion from a net loss of RM216.16 million the previous year, while revenue dropped 19.5% to RM2.85 billion.

Vantris CEO Zamri Jusoh said the quarter marked a “turning point” for the group on completion of its financial restructuring, significantly reducing the financial overhang that long challenged its progress.

He said the company’s immediate priority is to exit its Practice Note 17 (PN17) status by delivering two consecutive quarters of profitability, sustaining operational momentum and reinforcing stakeholder confidence.

Meanwhile, BIMB Securities has maintained its “buy” call on the stock with a target price of 72 sen.

It noted that Vantris is on track to deliver the two consecutive profitable quarters needed for a PN17 exit, supported by tighter cost control, a stronger balance sheet, and lower financing costs.

As of Oct 31, 2025, the group’s order book stood at RM6.3 billion, with another RM3.9 billion from joint ventures and associates.

Plan to exit PN17 status

The company had secured approval from the stock exchange regulator in June for its proposed regularisation plan to exit its PN17 status.

The plan included a capital reduction to eliminate accumulated losses and strengthen its capital structure, as well as a 20-to-one share consolidation to reduce the number of shares in circulation, aimed at boosting its share price and lowering volatility.

The restructuring, completed on Sept 26, involved issuing new shares and securities to settle outstanding liabilities, lowering total borrowings to RM5.7 billion from RM10.76 billion.

It resulted in Malayan Banking Bhd, CIMB Group Holdings Bhd and RHB Bank Bhd emerging as the company’s top three shareholders with 20.27%, 12.13% and 7.21% stakes, respectively.

The plan also involved a RM1.1 billion capital injection from the finance ministry, via Malaysia Development Holding Sdn Bhd (MDH), through redeemable convertible loan stocks (RCLS).

Upon full conversion of the RCLS, MDH could emerge as the single largest shareholder of Vantris with more than a 33% stake. - FMT