KUALA LUMPUR (May 30): Sapura Energy Bhd has kick-started its asset sale process to address its cash flow and balance sheet position with the planned disposal of heavy-lift and pipelay vessel Sapura 3000 for US$71.5 million (RM312.85 million).

In a filing, Sapura Energy said it has entered into a definitive memorandum of agreement (MoA) with Safeen Feeder Co – Sole Proprietorship Llc, a company in the Abu Dhabi Ports Group of Companies, for the disposal.

Built in 2008, the Sapura 3000 is a versatile heavy-lift pipe-laying vessel, equipped with a 3,000 short tonnes revolving mast crane, capable of executing deep and shallow water projects.

Sapura Energy took over ownership of the vessel in 2017 following the discontinuation of its 50:50 joint venture with Subsea 7 SA.

Once the sale is completed by July 15, 2022, Sapura Energy is expected to recognise net disposal gain of RM503,746, it said. The price tag is based on willing buyer-willing seller basis after conducting an international request for proposal (RFP), it added.

“The proceeds from the proposed disposal will be utilised for working capital and to reduce the borrowings of the Sapura Energy group,” it said.

Sapura Energy is currently in negotiations with creditors for a proposed scheme of arrangement as part of its debt restructuring plan, after receiving winding-up petitions as its cash flow was strained due to non-performing projects while financial obligations piled up.

The integrated upstream service provider has secured a restraining order against its creditors, which lasts three months from March 10 to June 9.

At end-January 2022, Sapura Energy had short-term borrowings of RM10.66 billion, which included long-term debts that was recategorised after breaching certain covenants. This was against cash equivalents of RM717.75 million.

At last close, Sapura Energy shares settled up half a sen or 6.25% at 8.5 sen, giving the group a market capitalisation of RM1.36 billion.