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New Straits Times
22-05-2025
- Business
- New Straits Times
[UPDATED] MACC probes dubious investments in GLC linked to 'Tan Sri'
PUTRAJAYA: The Malaysian Anti-Corruption Commission (MACC) will be gathering information from at least three countries as part of an investigation into questionable investment transactions involving a government-linked company. Its Chief Commissioner Tan Sri Azam Baki said the countries identified included Brazil, the Netherlands, and Singapore. "Testimonies and evidence relating to these overseas financial transactions are crucial in supporting the ongoing investigation into alleged corruption and money laundering," he told reporters today. He added that two Malaysians, believed to have acted as proxies in the investment activities, were also being tracked down. The probe is centred on a prominent corporate figure bearing the title "Tan Sri", suspected of involvement in money laundering linked to the ownership of Sapura Energy Bhd (SEB) shares worth over RM500 million. "To date, we have recorded statements from five individuals, including the Tan Sri in question," Azam said. "We expect to call in at least 13 more individuals to assist with the investigation." He said that the MACC had frozen over 100 bank accounts linked to the Tan Sri, his family members, and associated companies, amounting to more than RM217 million. On May 9, Sapura Energy Bhd issued a statement assuring clients, partners and stakeholders that its business operations and financial activities — including access to its bank accounts — remained unaffected and would continue as usual. The assurance followed news reports citing anonymous sources regarding the MACC investigation into a corporate figure, with speculation linking the probe to SEB shares and the historic merger between SapuraKencana Petroleum Bhd and Sapuracrest Petroleum Bhd. On May 8, it was reported that the MACC had opened an investigation paper against the individual, suspected of money laundering in relation to SEB shareholdings. Sources indicated that the investigation also covered suspected corruption involving several investments made after the merger of SapuraKencana Petroleum Bhd and Sapuracrest Petroleum Bhd — the entities that later formed Sapura Energy Bhd. Searches were carried out at several locations, including Sapura@Mines, Menara Permata Sapura — which houses Sapura Holdings Sdn Bhd — as well as the individual's residences in Selangor and Kuala Lumpur.
The Star
22-05-2025
- Business
- The Star
International cooperation needed for GLC investment probe, says MACC
PUTRAJAYA: Cooperation from more than three countries is required in its investigation involving a GLC, says the Malaysian Anti-Corruption Commission (MACC). Its Chief Commissioner Tan Sri Azam Baki said this includes working with Brazil and Singapore in its investigation involving money laundering related to Sapura Energy Bhd. Two Malaysians have been identified as proxies in these investments. "Investigations into the company involve money laundering, including an investment with a company in Brazil. "We need to obtain statements overseas with the assistance of Brazil, Singapore, the Netherlands and other countries to identify how the transactions occurred until the money arrived here," he said at a press conference at the MACC headquarters on Thursday (May 22). Previously, the MACC confirmed it was investigating a businessman with a "Tan Sri" title for money laundering linked to Sapura Energy Bhd shares amounting to RM500mil. On the forensic report of the video alleging corruption involving several Sabah state assemblymen, he said the report was handed to the investigation officer last week. All those involved will be called back for statements, he added. Azam did not elaborate when asked if the video had been determined to be authentic, saying this would prejudice the case. In 2024, a news portal reported on several video recordings allegedly showing state assemblymen receiving substantial sums in exchange for supporting a company's project application in a state.
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.
The Sun
14-05-2025
- Business
- The Sun
Sapura Energy returns to profitability, bolstered by restructuring momentum
PETALING JAYA: Sapura Energy Bhd (SEB) staged a turnaround for the financial year ended Jan 31, 2025 (FY25) with profit after tax and minority interest of RM190 million, compared to loss after tax and minority interest of RM509 million in the previous year. Revenue in FY25 stood at RM4.7 billion, an increase of RM385 million, or 8.9% or year-on-year, while the group's earnings before interest, tax, depreciation, and amortisation was RM524 million, the group said in announcing its audited financial results today. SEB's external auditors, Messrs Ernst & Young PLT, accompanied the FY25 audited financial statements with an unqualified audit opinion. In their report, the auditors said SEB's annual financial statements were prepared based on the assumption that the group and the company will continue operating. However, they highlighted a significant uncertainty about this assumption, as the group's and company's current liabilities exceed their current assets, and the group is experiencing serious cash flow problems. Despite the challenges, the financial statements of the group and the company have been prepared based on the assumption that they will continue operating as a going concern. This assumption largely depends on the timely approval, execution and completion of the proposed regularisation plan by the long stop date of March 11, 2026. The plan is essential for carrying out the schemes of arrangement, the conditional funding agreement, and settling business issues related to finished engineering and construction projects on time.
