Sapura Energy said this would provide more time for the company and its subsidiaries to engage with creditors in their debt restructuring efforts, without being distracted by the threat of legal proceedings.
KUALA LUMPUR: Sapura Energy Bhd
, which posted a net loss of RM3.3bil in the fourth quarter ended Jan 31 (4Q23), will continue to implement its Reset plan to address unsustainable debt and resolve overdue claims by trade creditors.
“Critical to the successful delivery of sustainable value to all stakeholders, the group is developing its regularisation plan to address its PN17 status, underpinned by the schemes of arrangement with lenders and creditors. The board of directors is committed to ensure the interest of all stakeholders will be considered in a fair and equitable manner, it stated,” Sapura Energy said in a statement.
The group has appointed MIDF Amanah Investment Bank as its principal advisers to help formulate a regularisation plan.
Building on the positive momentum achieved in the last financial year, Sapura Energy is determined to extend the turnaround in its operations to FY24.
“Our operational mantra is ‘Bid Right, Execute with Discipline’. We have strengthened our ability to ‘Bid Right’ by working within our risk appetite and working capital limitations, but we still have room to improve ‘Execute with Discipline”, group chief executive officer Datuk Mohd Anuar Taib said.
“We will bolster this capacity by rebuilding our core solutions and optimising project delivery.”
Sapura Energy said the engineering and construction (E&C) segment will continue to rebalance its projects portfolio and asset deployment between the Eastern and Western Hemispheres, pivoting towards transportation and installation projects while keeping an eye on decommissioning opportunities.
The business is expected to grow its footprint in the Atlantic and West African regions, it said.
Sapura Energy said the operations and maintenance (O&M) business is projected to remain competitive in Malaysia, while cautiously exploring opportunities to emerge as a regional player in the South-East Asian market.
Meanwhile, the group is confident that the utilisation of rigs in its drilling segment will remain robust in FY2024 and beyond. Sapura Drilling has all of its eleven rigs currently utilised, including five rigs on long- term contracts in Thailand.
“Consistent with its Reset Plan and as part of its PRS, the group is looking to divest its interest in SapuraOMV Upstream to pare down debts,” it said.
“We have a part in developing the energy eco-system in countries where we operate; and we need financial strength to perform that role effectively,” Anuar said.
“We must ensure our turnaround benefits the entire value chain; and regain the trust of our stakeholders - particularly clients, vendors, employees and shareholders.”
In 4Q23, Sapura Energy’s net loss narrowed to RM3.3bil, or loss per share of 20.67 sen against RM6.77bil, or 42.37 sen posted in the same quarter last year.
Revenue for the quarter more than doubled to RM1.22bil from RM426.6mil a year ago.
For the full year, the group posted an operating profit of RM705mil, a quadruple increase compared to the operating loss of RM2.2bil recorded in FY22.
Revenue in FY23 improved by 12% to RM4.6bil against the RM4.1bil posted in FY22.
The group continued to win new work, which amounted to about RM3.7bil in value, bringing its current orderbook to RM5.6bil.
In addition, the non-consolidated gross orderbook of the group's joint-venture entities stands at RM5.2bil. All eleven of its rigs are currently under contract in Malaysia, Thailand, Brunei and West Africa.
