By Sharen Kaur
KUALA LUMPUR: Sapura Energy Bhd (SEB) says Bursa Malaysia Securities' approval of its proposed regularisation plan (PRP) clears the path for the company to exit Practice Note 17 (PN17) status and emerge stronger and more resilient.
In a statement, SEB said Bursa Malaysia gave the green light via a letter dated June 30, 2025, marking a major milestone in the group's push to restructure its debt, strengthen its balance sheet, and regain full compliance under the Main Market Listing Requirements.
The approved PRP includes a comprehensive suite of measures, such as capital reconstruction, debt restructuring, a fundraising exercise, and necessary regulatory exemptions. These steps aim to tackle accumulated losses, reduce total borrowings, and support SEB's turnaround efforts while laying the groundwork for sustainable growth.
SEB recorded a net loss of RM477.96 million for the first quarter ended April 30, 2025 (1Q FY2026), reversing a net profit of RM82.13 million in the same period last year. The loss was mainly due to a higher operating loss of RM444.3 million, driven by increased costs associated with ongoing engineering and construction (E&C) projects.
Revenue for the quarter fell 31.88 per cent to RM801.37 million from RM1.18 billion a year earlier, largely impacted by challenges in the E&C project in Angola, which resulted in lower contributions from the segment. The decline was also due to reduced activity in the operations and maintenance (O&M) and drilling segments, following the completion of certain projects and seasonal factors.
Looking ahead, the group expects its financial performance to improve in the coming quarters, supported by progressive revenue recognition from ongoing E&C work and the commencement of new contracts for several drilling rigs.
Sapura Energy said its firm order book of RM7.9 billion provides solid revenue visibility, which is further strengthened by an additional RM4.8 billion, representing its 50 per cent share of the non-consolidated order book held through joint ventures and associates.
SEB said the funds raised as part of the PRP will be used primarily to settle outstanding payments to vendors within Malaysia's oil and gas sector, helping to stabilise SEB's supply chain and operational commitments.
"We wish to extend our gratitude to Bursa Securities for their approval," said SEB group chief executive officer Muhammad Zamri Jusoh.
"This not only validates our regularisation strategy but also paves the way for us to persevering from PN17 stronger and more resilient. We remain committed to executing the regularisation plan responsibly, delivering value to our stakeholders and restoring market confidence in our business."
SEB said a general meeting of shareholders will be called soon to secure approval for the PRP. Once endorsed, the company will implement the plan to fully meet Bursa Malaysia's listing requirements.
The restructuring is expected to take effect by August 2025 or by the longstop date of March 11, 2026, marking the conclusion of one of Malaysia's largest and most complex corporate restructuring exercises.
Source : sapura-energy-wins-bursa-nod-restructuring-targets-stronger-post