KUALA LUMPUR (March 25): National oil company Petroliam Nasional Bhd (Petronas) has denied reports and speculation on “talks with the government on a proposal to take a significant stake” in financially troubled Sapura Energy Bhd.
In a statement on Friday (March 25), Petronas said it had always been and will continue to be strictly guided by an established framework for any investment or divestment consideration.
“Petronas wishes to emphasise it remains committed to working closely together with oil and gas services and equipment players, leveraging their expertise and capabilities as activities increase with the industry recovering from the impact of Covid-19,” it stressed.
Petronas' statement came after former premier Datuk Seri Najib Razak wrote on Facebook on March 20, urging the government to protect Sapura Energy from bankruptcy by providing loans or getting Petronas or Khazanah Nasional Bhd to take over ownership of the group from Permodalan Nasional Bhd (PNB).
Najib argued that the people would face big losses if Sapura Energy is not saved, citing RM4 billion in losses to holders of Amanah Saham Bumiputera and RM10 billion in losses to Malayan Banking Bhd, as well as the 10,000 employees that would lose their jobs.
Sapura Energy is currently undertaking a massive debt restructuring involving banks, vendors and contractors.
The court has granted an order under Section 366 of the Companies Act that will enable the company and its subsidiaries to summon meetings with creditors to consider and approve a proposed scheme of arrangements and compromise as part of its debt restructuring plan.
Sapura Energy has also obtained a restraining order under Section 368 — effective for three months from March 10 — to restrain and suspend legal proceedings against it while enabling the group and its subsidiaries to engage with creditors without being disrupted by the threat of litigation.
Cash-strapped Sapura Energy recently posted a net loss to the tune of RM8.9 billion — its highest ever — for the financial year ended Jan 31, 2022 (FY22) from a net loss of RM160.87 million for the prior financial year as it realised impairment on goodwill and property, plant and equipment worth RM5.39 billion collectively.
Annual revenue fell by 22.84% to RM4.13 billion from RM5.35 billion for FY21 due to lower contributions from its engineering and construction, and operation and maintenance segments.