SRI SHAHRIL SHAMSUDDIN SAID POTENTIAL STRATEGIC PARTNERSHIP WITH UNIVERSAL FIRMS

SRI SHAHRIL SHAMSUDDIN SAID POTENTIAL STRATEGIC PARTNERSHIP

SERI KEMBANGAN: Sapura Energy Bhd is in converses with a few universal firms for a potential strategic partnership or transfer of part of its drilling business, said president and group CEO Tan Sri Shahril Shamsuddin.

He said the potential partnership will be like them as of late signed manage OMV Aktiengesellschaft, under which it is selling a half stake of its investigation and creation (E&P) auxiliary Sapura Upstream Sdn Bhd to the Austrian firm.

“It is very like the OMV deal, it is the other organization seeking us,” he told reporters after its EGM today.

On the amount of its drilling business it means to sell, Shahril said it would rely upon the cost and nature of the potential partners. He said the deal should also empower the group to enter new markets and give access to new equipment at competitive prices.

The group right now has 16 resources under its drilling business, including eight semi-tender apparatuses and eight tender help rigs, with a utilization rate of 35%. Shahril said these assets are “young” with a normal of 15 to 20 additional years to go.

Sapura Energy’s third core businesses are
Drilling and the other two being E&P and engineering and construction (E&C).

For the E&C and drilling organizations, Sapura Energy has won contracts worth RM7.1 billion to date, of which RM3.5 billion are neighborhood and RM3.6 billion are abroad, including Saudi Arabia, Mexico, India and additionally Australia, Africa, and others.

The group’s aggregate order book remains at RM18.2 billion, of which RM4.4 billion will be perceived this financial year finishing Jan 31, 2019 (FY19). About RM5.4 billion will be perceived in FY20 while RM8.4 billion will be perceived from FY21 onwards.

At the EGM, investors endorsed its plan for a rights issue to raise up to RM4 billion, which will be utilized to pare down obligation. Shahril said the EGM was extremely smooth because of the strong sponsorship it got from institutional assets.

The exercise will raise RM3 billion through the rights issue of conventional shares with free warrants and RM1 billion preference shares.

Sapura Energy’s share value fell 1.45% or half sen to close at 34 sen today with 26.04 million shares done.

Source:https://www.thesundaily.my/business/sapura-energy-in-talks-for-partnership-in-drilling-business-YH180890

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