Sapura continues decisive actions to resolve liquidity issues

KUALA LUMPUR: Sapura Energy Bhd reiterated that it has taken and will continue taking decisive actions to resolve the current liquidity issues, including expediting claims and commercial settlements with clients, discussing with vendors, and negotiating with lenders for support through existing working capital facilities.

In a filing with Bursa Malaysia today, it said the business segments continue to execute 59 projects globally with all operating licences with clients remaining intact.

"Our exploration and production business, operated through SapuraOMV, continues to produce gas at a rate of 34 kboe per day,” it said.

On Dec 2, a global energy news portal reported that cash-strapped Sapura Energy looked to have been dealt a blow by failing to qualify for Petroliam Nasional Bhd's prized Kasawari phase two front-end engineering and design contract.

"We would like to reiterate that Sapura Energy is still a going concern.

"We acknowledge that the group is currently facing short-term cash flow and liquidity issues, primarily exacerbated by the unprecedented COVID-19 pandemic,” it said.

Focusing on long-term sustainability, it said the previously announced Board Restructuring Task Force is drawing up a reset plan that aims to strengthen the balance sheet, improve the financial framework, streamline the operating model, and chart future business direction.

The task force comprises group chief executive officer Datuk Anuar Taib and five directors from Sapura Energy’s board, while PriceWaterhouseCoopers and Rothschild & Co have been appointed as independent financial advisers.

It said the development of the reset plan has been progressing well.

"We have engaged with key stakeholders and they have been supportive,” Anuar said. - Bernama
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