Latest news with #SapuraEnergy
BusinessToday
26-05-2025
- Business
- BusinessToday
Bursa Ends Marginally Lower Amid Cautious Sentiment
Bursa Malaysia closed marginally lower on Monday, with the benchmark FBM KLCI dipping by 1.08 points or 0.07% to settle at 1,534.30 amid cautious investor sentiment and mild profit-taking in selected heavyweight counters. The index traded between 1,528.93 and 1,537.27 throughout the session, reflecting a narrow range as investors remained on the sidelines ahead of key global economic data releases. Broader market performance was also subdued. The FBM 70 Index slipped 46.90 points or 0.29% to 16,303.36, while the FBM Emas Index lost 18.36 points or 0.16% to close at 11,455.69. The FBM ACE declined 36.24 points or 0.32% to 11,389.98. Meanwhile, the FTSE4Good Bursa Malaysia Index (F4GBM) eased 1.28 points or 0.14% to 923.85. On the actives list, Sapura Energy (SAPNRG) led in volume with over 1.24 billion shares traded, closing unchanged at 4 sen. Ecoshop shed 4 sen to RM1.16 with 433 million shares done, while OCR Group stayed flat at 3.5 sen on trades exceeding 33 million shares. Tanco Holdings rose 2.5 sen to RM1.00, and HM remained steady at 18 sen. Sentiment on the local bourse stayed mixed as global market direction remained unclear, with investors awaiting cues from key US inflation data and ongoing geopolitical developments. Related
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.
The Star
14-05-2025
- Business
- The Star
Auditor flags going concern for Sapura Energy
KUALA LUMPUR: Sapura Energy Bhd 's external auditors Messrs. Ernst & Young PLT (EY) issued an unqualified audit opinion with a material uncertainty related to going concern in the independent auditors' report for the financial year ended Jan 31, 2025. In a filing with Bursa Malaysia, Sapura Energy said its auditor highlighted that the group's current liabilities exceeded its current assets by RM11.2bil and RM4.3bil respectively, and noted that the group is facing severe liquidity constraints. Nevertheless, EY said the financial statements of the group and of the company have been prepared on a going concern basis, the validity of which is highly dependent on the timely approvals, execution and completion of the proposed regularisation plan on or before the long stop date on March 11, 2026, which is necessary for the schemes of arrangement (SOA), the conditional funding agreement and the commercial settlements related to terminated engineering & construction (E&C) projects to take effect within the stipulated timeframe. In a separate statement, Sapura Energy said previously, in financial years 2022, 2023 and 2024, the external auditors also flagged material uncertainty related to going concern in the group and the company's financial statements. The material uncertainty included, amongst others, extensions of restraining orders, achieving favourable outcomes of the legal claims for terminated E&C projects and the successful and timely implementation of the proposed SOA with at least 75% approval from relevant scheme creditors in the court convened meetings. 'Over the years, Sapura Energy has been able to achieve these critical milestones, enabling the group to proceed with the finalisation of its proposed regularisation plan, with a target to submit to Bursa Malaysia in May 2025,' it said. Sapura Energy is currently preparing the circular in relation to the proposed regularisation plan for submission to Bursa in May 2025 and anticipates that the restructuring effective date will be achieved by August 2025 or latest by the longstop date.
New Straits Times
14-05-2025
- Business
- New Straits Times
Sapura Energy posts RM190mil profit in FY25, but going concern risks remain
KUALA LUMPUR: Sapura Energy Bhd has returned to profitability for the first time in six years, posting a net profit of RM190 million for the financial year ended January 31, 2025 (FY25), compared to a net loss of RM509 million in FY24. The group's revenue rose 8.9 per cent year-on-year (YoY) to RM4.7 billion, driven by improved performance across its core business segments. The audited financial statements for FY25 were accompanied by an unqualified audit opinion from external auditors Messrs. Ernst & Young PLT (EY). However, EY highlighted a material uncertainty regarding the company's ability to continue as a going concern. In its report, EY noted that the group's current liabilities still exceed its current assets and that Sapura Energy continues to face severe liquidity challenges. Despite this, the financial statements were prepared on a going concern basis, which EY stated is contingent upon the timely approval, execution, and completion of the Proposed Regularisation Plan by the Long Stop Date of March 11, 2026. The plan is crucial for activating the group's schemes of arrangement (SOA), conditional funding agreements, and settlements tied to previously terminated engineering and construction (E&C) projects. Similar going concern uncertainties were flagged in FY2022, FY2023, and FY2024. These concerns included the need for extensions of restraining orders, favourable legal outcomes related to E&C claims, and at least 75 per cent approval from scheme creditors at court-convened meetings for the SOA. Over the past few years, Sapura Energy has met several critical milestones, enabling progress on finalising its regularisation plan. The group is targeting a formal submission to Bursa Malaysia by May 2025. In a filing with Bursa, the board expressed confidence in the group's future, stating that the successful execution of key restructuring initiatives has laid a strong foundation for the completion of the regularisation plan.
