KUALA LUMPUR: With RM4 billion coming from the recently approved rights issue that will raise about RM4 billion to pare down debts, Tan Sri Shahril Shamsuddin, president and CEO of the company of Sapura Energy Bhd is confident of turning the group around.
Last week, Sapura Energy announced that its units Sapura Fabrication Sdn Bhd and Sapura Saudi Arabia had been selected by the Saudi Arabian Oil Company (Saudi Aramco) for a Long-Term Agreement (LTA) programme, which would enable Sapura Energy to secure engineering, procurement, fabrication, transportation and installation (EPCI) contracts to support Saudi Aramco’s offshore projects, which could be a lucrative proposal.
Also, Sapura Energy announced last month the sale of a 50% stake in its exploration and production unit for possibly US$800 million or RM3.32 billion in cash to Austrian stalwart OMV Aktiengesellschaft.
It would seem that things are looking promising for the oil and gas group again.
In fact, Shahril has said that Sapura Energy would turn the corner by financial year ending Jan 31, 2020. This comes after the company suffered a RM2.50 billion net loss from RM5.89 billion in revenue for its year ended January 2018.
Its improved balance sheet will certainly help in its recovery.
Read the rest of the story in the latest issue of The Edge.