KUALA LUMPUR (April 27): Sapura Energy Bhd said it has taken internal austerity measures to mitigate the impact of the Covid-19 pandemic and low oil prices, with its leadership team to take a 50% cut in salaries with immediate effect.
Its president and group chief executive officer Tan Sri Shahril Shamsuddin said it is imperative for the senior management to “take the hit” in order for the group to protect its more vulnerable employees.
“In the past year, we have done a lot of work to strengthen the company including growing our top line and improving efficiencies in the way we operate,” Shahril said. “However, Covid-19 and low oil prices have impacted our financial strength.”
“To sustain our business, we need to implement immediate austerity measures to preserve our cash flow,” he said in a statement.
The austerity measures also include the readjustment of employees’ salaries between five to 45% across the board effective after Ramadan, as well as a workforce rationalisation.
However, Shahril said the group will ensure those with lower income are less burdened by the cuts.
He assured that the leadership of Sapura Energy has an agile strategy to navigate through the storm, which has adversely impacted many other businesses.
“The industry landscape will be tough moving forward but if we maintain our resilience, we will come out of this leaner and stronger,” he said.
Sapura Energy’s share price closed unchanged at 8.5 sen today, giving it a market capitalisation of RM1.36 billion.
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