Sapura Energy Says Business Still On-Going Despite Cashflow Issues

Sapura Energy Berhad which is primarily involved in the oil and gas services and solutions had issued a statement with regards to local reports on the company’s dire situation.

It added that the company is still a going concern and there is no indication of otherwise, accordingly Sapura Energy stated that the business segments continue to execute 59 projects globally with all its operating licenses with clients remaining intact. As for the exploration & production business, operated through SapuraOMV, the projects continues to produce gas at a rate of 34 kboe per day.

However, the group had also acknowledged the fact it is currently facing short-term cash flow and liquidity issues and had placed the matter was primarily exacerbated by the unprecedented COVID-19 pandemic. Sapura Energy claims that it had taken decisive actions to resolve the current liquidity issue, including expediting claims and commercial settlements with clients; discussing with vendors, and negotiating with lenders for support through existing working capital facilities.

On long-term sustainability, the previously announced Board Restructuring Task Force is said to be drawing up a reset plan that will aim to strengthen its balance sheet, improve the financial framework, streamline the operating model, and chart future business direction. The Task Force comprises Group CEO Datuk Anuar Taib and five directors from Sapura Energy’s board. PriceWaterhouseCoopers and Rothschild & Co who have been appointed as independent financial advisers.

The development of the reset plan is progressing well. “We have engaged with key stakeholders and they have been supportive,” said Datuk Anuar. “We thank our shareholders, clients, vendors, lenders and employees for their understanding and confidence in Sapura Energy

Previous articleCustoms Malaysia Hands Edaran Berhad IT Maintenance Work Worth RM41 Million
Next articleTop Glove Receives Shareholder Approval For Dual Primary Listing In Hong Kong

LEAVE A REPLY

Please enter your comment!
Please enter your name here