Kuala Lumpur, 8 December 2021
Sapura Energy Berhad (“Sapura Energy” or “the Group”), a leading global integrated oil and gas services and solutions provider, would like to clarify recent news reports regarding the company.
We would like to reiterate that Sapura Energy is still a going concern. Our business segments continue to execute 59 projects globally with all our operating licenses with clients remaining intact. Our Exploration & Production business, operated through SapuraOMV, continues to produce gas at a rate of 34 kboe per day.
We acknowledge that the Group is currently facing short-term cash flow and liquidity issues, primarily exacerbated by the unprecedented COVID-19 pandemic. Sapura Energy has taken and will continue to take decisive actions to resolve the current liquidity issue, including expediting claims and commercial settlements with clients; discussing with vendors, and negotiating with lenders for support through existing working capital facilities.
Focusing on long-term sustainability, the previously announced Board Restructuring Task Force (“Task Force”) is drawing up a reset plan that aims to strengthen our balance sheet, improve our financial framework, streamline our operating model, and chart future business direction.
The Task Force comprises Group CEO Datuk Anuar Taib and five directors from Sapura Energy’s board. PriceWaterhouseCoopers and Rothschild & Co have been appointed as independent financial advisers. The development of the reset plan is progressing well.
“We have engaged with key stakeholders and they have been supportive,” said Datuk Anuar. “We thank our shareholders, clients, vendors, lenders, and employees for their understanding and confidence in Sapura Energy.”
Cautionary note: “Sapura Energy”, “the group” and “the company” are used for convenience where references are made to Sapura Energy Berhad in general. Similarly, words like “we”, “us” and “our” are used to refer to Sapura Energy Berhad in general or to those who work for the company and its subsidiaries, where relevant. This press release may contain forward-looking statements. All statements other than statements of historical facts included in this press release, including, without limitation, those regarding our financial position, financial estimates, business strategies, prospects, plans and objectives for future operations, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which we will operate in the future. Such forward-looking statements reflect our current view with respect to future events and are not a guarantee of future performance. Forward-looking statements can be identified by the use of forward-looking terminology such as the words “may”, “will”, “would”, “could”, “believe”, “expect”, “anticipate”, “intend”, “estimate”, “aim”, “plan”, “forecast” or similar expressions and include all statements that are not historical facts.