Latest news with #MuhammadZamriJusoh
The Star
14-05-2025
- Business
- The Star
Sapura Energy set for regularisation plan
The company said that under its reset plan, there would be a focus on improving bidding and project delivery capabilities. PETALING JAYA: Sapura Energy Bhd (SEB) is finalising a regularisation plan to exit the Practice Note 17 (PN17) status that includes a few corporate exercises to put the company on a stronger financial and operational standing. The company said in a statement that the plan would be finalised soon and includes a fund-raising initiative in which the Finance Ministry through Malaysia Development Holding Sdn Bhd (MDH) will subscribe up to RM1.1bil in redeemable convertible loan stocks (RCLS) to fund its repayment to vendors. 'MDH will become a major shareholder upon full conversion of the RCLS, which will result in MDH holding more than 33% of SEB's enlarged share capital,' the upstream oil and gas operator said. There would also be a proposed capital reconstruction involving a 99.99% capital reduction to offset accumulated losses; and a 20-to-1 share consolidation to enhance share trading prices and reduce price volatility. 'A comprehensive proposed debt restructuring exercise will reduce SEB's total borrowings from about RM10.8bil to RM5.6bil, yielding substantial interest savings and reduced financial burden, through several mechanisms that, among others, includes debt conversions to equity and equity-like instruments and a debt waiver,' SEB explained. The company added that under its reset plan, there would be a focus on improving bidding and project delivery capabilities. The plan has resulted in a sustained annual revenue of RM4bil since its launch in 2022. Meanwhile, the company said it would continue its efforts in repositioning itself for long-term sustainability and profitability. For its financial year ended Jan 31, 2025, the company posted a net profit of RM190mil on the back of RM4.7bil in revenue. Its order book currently stands at RM8.2bil. Group chief executive officer Muhammad Zamri Jusoh said with the strategic initiatives and the successful implementation of the proposed regularisation plan, SEB is confident in its path to operational recovery, improved financial health, and eventual upliftment from PN17 status. 'We are hopeful that this plan will not only enable SEB's recovery but also catalyse the growth of the country's energy ecosystem,' he said. Muhammad Zamri added the plan, plus the company's continued focus on its core business in engineering and construction, drilling, and operations and maintenance, represents the most viable pathway to a turnaround in its financial status. 'We are confident the successful execution of the plan will return the group to profitability and restore confidence among stakeholders,' he noted. Its share price remained unchanged at 4.5 sen yesterday, with a market capitalisation of RM661.53mil.
The Sun
14-05-2025
- Business
- The Sun
Sapura Energy announces regularisation plan to exit PN17 status
PETALING JAYA: Sapura Energy Bhd (SEB) today announced its regularisation plan aimed at facilitating the group's exit from Practice Note 17 (PN17) status and putting it back on a stronger financial and operational standing. The final plan, expected to be submitted to Bursa Malaysia later this month, includes a debt restructuring exercise to resolve about RM12.1 billion in total borrowings and trade liabilities and a capital reconstruction to set off against the group's accumulated losses. Group CEO Muhammad Zamri Jusoh said implementation of the regularisation plan, together with the continued focus on its core businesses in engineering and construction, drilling, and operations and maintenance, represents the most viable pathway to turn around the group's financial condition. 'We are confident the successful execution of the plan will return the group to profitability and restore confidence among stakeholders,' he said in a statement filed with Bursa Malaysia yesterday. In financial years 2022, 2023 and 2024, the external auditors highlighted a material uncertainty related to going concern in the financial statements of both the group and the company. The uncertainty was tied to several key factors, including the need to extend restraining orders, secure favourable outcomes in legal claims related to terminated engineering and construction projects, and successfully implement the proposed schemes of arrangement with at least 75% approval from relevant scheme creditors during court-convened meetings. Over the years, SEB has managed to achieve these critical milestones, allowing the group to move forward with finalising its regularisation plan. In the filing with Bursa Malaysia, the SEB board stated its confidence in the group's forward path, noting that the successful delivery of key restructuring actions provides a strong foundation for completing the plan. The FY25 audited financial statements will be included in SEB's annual report, expected to be published by May 31. SEB said the regularisation plan represents the culmination of the group's turnaround strategy, which began following its classification as a PN17 issuer in 2022. With help from its board restructuring task force, the group put into action a reset plan based on three main goals – improve its financial health by cutting down on unmanageable debt and paying off old bills; boost efficiency by carefully managing projects, improving risk management and focusing on what it does best; and promote future growth by changing its businesses to offer solutions, including support for global energy transition. Under the reset plan, SEB implemented a multipronged strategy to stabilise its global operations, which were severely affected by the Covid-19 pandemic. A key focus was on strengthening bidding and project delivery capabilities, prioritising margin preservation and enhancing financial discipline to support healthy cash flow. The group improved enterprise risk management by changing its business development strategy to focus on safer, day-rate, or reimbursable contracts – such as drilling services, operations and maintenance, and transport and installation – while carefully choosing to take on some higher-risk lump-sum engineering, procurement, construction and installation projects. These measures have enabled SEB to sustain annual revenue above RM4 billion since 2022, despite ongoing challenges in securing working capital and bank guarantees. 'With these strategic initiatives and the successful implementation of the regularisation plan, SEB is confident in its path to operational recovery, improved financial health and eventual upliftment from PN17 status,' said Muhammad Zamri. 'We are hopeful that this plan will not only enable SEB's recovery but also catalyse the growth of the country's energy ecosystem,' he added.
New Straits Times
14-05-2025
- Business
- New Straits Times
Sapura Energy targets PN17 exit, to slash nearly RM11bil debt by half
KUALA LUMPUR: Sapura Energy Bhd today unveils a regularisation plan to facilitate its exit from Practice Note 17 (PN17) status and return to a stronger financial and operational standing. The oil and gas sector services company said the final plan, expected to be submitted soon, includes a debt restructuring to resolve about RM12.1 billion in total borrowings and trade liabilities. It also entails a capital reconstruction to set off against the company's accumulated losses. Sapura Energy group chief executive officer Muhammad Zamri Jusoh said the regularisation plan represents the most viable pathway to turn around the company's financial condition. "We are confident the successful execution of the plan will return the company to profitability and restore confidence among stakeholders," Zamri said. According to Sapura Energy, the regularisation plan comprises four key components designed to restore its financial health and position it to uplift its PN17 status. The proposed capital reconstruction involves a 99.99 per cent capital reduction to offset accumulated losses and a 20-to-1 share consolidation to enhance share trading price and reduce price volatility. The comprehensive debt restructuring will reduce Sapura Energy's total borrowings from about RM10.8 billion to RM5.6 billion, yielding substantial interest savings and reduced financial burden. Sapura Energy said the plan also incorporates a proposed fund-raising initiative where Malaysia Development Holding Sdn Bhd (MDH) will subscribe up to RM1.1 billion in redeemable convertible loan stocks (RCLS). This will be earmarked to settle outstanding payments to vendors in the Malaysian oil and gas ecosystem. "MDH will become a major shareholder upon full conversion of the RCLS, which will result in MDH holding more than 33 per cent of Sapura Energy's enlarged share capital. "MDH will seek an exemption from the Securities Commission from the requirement to make a mandatory general offer to Sapura Energy's existing shareholders. "This exemption will be subject to the approval of non-interested shareholders at an extraordinary general meeting (EGM), to be convened at a later date," it said. With the strategic initiatives and successful implementation of the proposed regularisation plan, Zamri said Sapura Energy is confident in its path to operational recovery, improved financial health and eventual upliftment from PN17 status. "We are hopeful that this plan will not only enable Sapura Energy's recovery but also catalyse the growth of the country's energy ecosystem," he added.
New Straits Times
14-05-2025
- Business
- New Straits Times
Sapura Energy proposes regularisation plan to exit PN17, slash RM12.1bil debt by more than half
KUALA LUMPUR: Sapura Energy Bhd today unveils a regularisation plan to facilitate its exit from Practice Note 17 (PN17) status and return to a stronger financial and operational standing. The oil and gas sector services company said the final plan, expected to be submitted soon, includes a debt restructuring to resolve about RM12.1 billion in total borrowings and trade liabilities. It also entails a capital reconstruction to set off against the company's accumulated losses. Sapura Energy group chief executive officer Muhammad Zamri Jusoh said the regularisation plan represents the most viable pathway to turn around the company's financial condition. "We are confident the successful execution of the plan will return the company to profitability and restore confidence among stakeholders," Zamri said. According to Sapura Energy, the regularisation plan comprises four key components designed to restore its financial health and position it to uplift its PN17 status. The proposed capital reconstruction involves a 99.99 per cent capital reduction to offset accumulated losses and a 20-to-1 share consolidation to enhance share trading price and reduce price volatility. The comprehensive debt restructuring will reduce Sapura Energy's total borrowings from about RM10.8 billion to RM5.6 billion, yielding substantial interest savings and reduced financial burden. Sapura Energy said the plan also incorporates a proposed fund-raising initiative where Malaysia Development Holding Sdn Bhd (MDH) will subscribe up to RM1.1 billion in redeemable convertible loan stocks (RCLS). This will be earmarked to settle outstanding payments to vendors in the Malaysian oil and gas ecosystem. "MDH will become a major shareholder upon full conversion of the RCLS, which will result in MDH holding more than 33 per cent of Sapura Energy's enlarged share capital. "MDH will seek an exemption from the Securities Commission from the requirement to make a mandatory general offer to Sapura Energy's existing shareholders. "This exemption will be subject to the approval of non-interested shareholders at an extraordinary general meeting (EGM), to be convened at a later date," it said. With the strategic initiatives and successful implementation of the proposed regularisation plan, Zamri said Sapura Energy is confident in its path to operational recovery, improved financial health and eventual upliftment from PN17 status. "We are hopeful that this plan will not only enable Sapura Energy's recovery but also catalyse the growth of the country's energy ecosystem," he added.
