SAPURA Energy Bhd (SEB) has secured approval from Bursa Malaysia Securities for its proposed regularisation plan (PRP), a critical development in the company’s efforts to exit Practice Note 17 (PN17) status and re-establish its financial footing.
In a statement on Monday, SEB said the approval, formalised in a letter dated 30 June 2025, represents a key step forward in one of Malaysia’s most complex corporate restructuring exercises.
The PRP comprises capital reconstruction, comprehensive debt restructuring, a fundraising initiative, and regulatory exemptions—all aimed at reducing borrowings, addressing accumulated losses, and creating a foundation for long-term recovery.
“We wish to extend our gratitude to Bursa Securities for their approval,” said group chief executive officer Muhammad Zamri Jusoh.
“This not only validates our regularisation strategy but also paves the way for us to persevering from PN17 stronger and more resilient. We remain committed to executing the regularisation plan responsibly, delivering value to our stakeholders and restoring market confidence in our business.”
The group’s turnaround strategy comes as it posted a net loss of RM477.96 million for the first quarter ended 30 April 2025, compared to a net profit of RM82.13 million in the same period last year. The setback was largely due to an operating loss of RM444.3 million, driven by higher costs tied to engineering and construction (E\&C) projects.
Quarterly revenue fell 31.88 per cent to RM801.37 million from RM1.18 billion a year ago, with weaker performance attributed to project difficulties in Angola and reduced activity in the drilling and maintenance segments.
Nonetheless, SEB remains confident in its medium-term outlook, projecting improvements in upcoming quarters as new drilling contracts commence and revenue continues to be recognised from ongoing E&C work.
The group reported a firm order book of RM7.9 billion, bolstered by an additional RM4.8 billion in non-consolidated orders via joint ventures and associates—offering what it described as “solid revenue visibility”.
Proceeds from the PRP will be used primarily to settle outstanding payments to domestic vendors, helping to stabilise supply chains and uphold operational continuity in Malaysia’s oil and gas sector.
A general meeting of shareholders will be convened shortly to seek formal approval for the PRP. If endorsed, implementation is expected by August 2025 or by the longstop date of 11 March 2026. -July 1, 2025
