Sapura Says Its Future is Uncertain!

 

Financially troubled Malaysian offshore and marine contractor Sapura Energy has sought shareholders’ approval for its proposed regularisation plan (PRP). Sapura had an extraordinary general meeting on 30 July. 

In a circular distributed to shareholders, the contractor outlined the key proposals that constitute the PRP. These include a 99.99% capital reduction to reduce accumulated losses and a proposed debt restructuring exercise that will reduce Sapura’s total borrowing from approximately 10.8 billion ringgit ($2.55 billion) to around 5.6 billion ringgit. Annual interest costs are expected to decrease by more than 500 million ringgit — a reduction of about 60% — enabling Sapura to be in a better position to achieve profitability.

 

Source: https://en.wikipedia.org

In tandem, Malaysia Development Holding (MDH) will subscribe up to 1.1 billion ringgit in redeemable convertible loan stocks, earmarked to settle outstanding payments to vendors in the Malaysian oil and gas sector. 

The plan requires a significant share capital reduction, share consolidation, and debt restructuring, which could leave existing shareholders with a much smaller stake in the company. The restructuring plan has been criticized for potentially benefiting new investors and creditors more than existing shareholders.  

Why is the Government involved? Isn’t this a private sector, public listed company? To save bumiputera suppliers? Would the Government do the same for other private sector companies? Do we have guarantees for bumiputera entrepreneurs? Is public funds for private use? Where are the questions in Parliament about this? And why did so many banks lend so much to so few?  And after all this, Sapura says its future is uncertain! Actually, everyone’s future is uncertain. More so, I guess for Sapura! 

Reference:

Sapura Energy says its future is 'uncertain' without shareholder approval, Amanda Battersby, UPSTREAM, 9 July 2025