Sapura Energy aims to maximise value with listing of E&P asset


  • Business
  • Saturday, 30 Jun 2018

Sapura

KUALA LUMPUR: Amidst the ongoing upturn in the oil and gas (O&G) industry, Sapura Energy Bhd is evaluating plans to maximise value for shareholders including a potential listing of its exploration and production (E&P) business and undertaking a capital raising exercise.

According to a company statement announcing its results for the first quarter ended April 30, 2018 (Q1FY19) yesterday, Sapura Energy said it remained committed to strengthening its financial position, reflecting the O&G-related group's readiness to reassess and redefine its businesses and act ahead of time.

Commenting on the move, Sapura Energy president and group chief executive officer Tan Sri Shahril Shamsuddin said the group had always been progressive and dynamic in its strategy and business decisions.

“These initiatives are part of our overall strategy while we continue to refine our plans to be ready for the upturn and stay ahead of the competition.

“We believe this is an opportune time for us to consider these initiatives to maximise value for our shareholders besides strengthening our balance sheet by paring down our debt,” he said.

Against the backdrop of increased investments in the O&G industry following the crude oil price upturn, market observers believe that it is now opportune for Sapura Energy to strengthen its financial position and list its E&P business to give better value to shareholders.

Crude oil prices have surged to around US$78 a barrel yesterday compared to US$67.78 at the end of Sapura Energy’s financial year ended Jan 31, 2018 and at below US$50 a year ago.

Sapura Energy also made significant milestones in the E&P business in Q1 FY19, including taking a final investment decision to develop the Gorek, Larak and Bakong blocks as phase 1 of its SK408 gas fields, which represents a critical milestone in unlocking the value and providing visibility of its long-term gas monetisation plans in Sarawak.— Bernama

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