SERI DEVELOPMENT: Sapura Energy Bhd (Sapura Energy) sees more opportunities for collaboration with abroad organizations to additionally strengthen its performance.
Its Group President and Chief Executive Officer Tan Sri Shahril Shamsuddin said Sapura Energy will open increasingly collective chances and is considering a few joint endeavors from potential organizations in the penetrating portion.
“A few overseas organizations have just talked about the issue and we are researching to select the best partners and ready to offer the best costs.
“The cooperation is much similar to the JV concurrence with Austrian coordinated O and G company, OMV Aktiengesellschaft (OMV AG), which was recently signed,” he said at a question and answer session after the extraordinary general meeting (EGM) here, today.
Also present, Sapura Energy Chairman, Datuk Hamzah Bakar.
Shahril said that so far Sapura Energy has 16 resources for a drilling segment that can be utilized for 15 to 20 years.
“The consumption rate for the asset is currently at 35 percent, accounting around six to seven resources,” he said.
Meanwhile, commenting on EGM’s choice, he said the investors concurred on goals for rights issues to raise RM4 billion.
The injection of the fund, he said, would give better value to investors and create benefit for the organization, amid better opportunities for growth.
Sapura Energy means to utilize the assets to be raised to reduce its RM16 billion obligation with the bank and empower it to have better financial adaptability and also balance sheet
The resource will save about RM174 million every year for loan interest payments and reduce the level of debt to 0.94 times.
The rights issue will likewise expand the number of shares of the organization to 15.98 billion offers from 5.99 billion offers, with further development to 19.37 billion shares when the organization’s redeemable Islamic redeemable inclination shares (RCPS-I) and free warrants are totally revised.
To date, the estimation of Sapura Energy’s legally binding turnover added up to RM18.2 billion, including for the financial year 2019 adding up to RM4.4 billion.