Date: 29.11.2018.

Kuala Lumpur, 29 November 2018

Shareholders of Sapura Energy Berhad voted overwhelmingly to subscribe to the group’s rights issue and support its growth plans at the Extraordinary General Meeting (EGM) today. In a significant vote of confidence, shareholders passed all six resolutions in conjunction with the proposed rights issue, which entails raising up to RM4 billion.

“We are humbled by the support from our shareholders. The positive results indicate that shareholders are now fully conversant with the group’s growth prospects, which will bring greater returns and benefits in time,” said Tan Sri Shahril Shamsuddin, President and Group Chief Executive Officer of Sapura Energy.

Sapura Energy is also making progress with its proposed strategic partnership with Austria-based OMV.  Proceeds from both the rights issue and proposed strategic partnership with OMV will be utilised to repay the group’s borrowings and for working capital. Upon completion of both exercises, borrowings are expected to reduce from RM16.4 billion as at 31 Jan 2018 to RM9.8 billion, thus lowering gearing ratio significantly from 1.74x to 0.62x. Subsequently, the group is expected to benefit from savings in finance cost of approximately RM320 million. The stronger balance sheet will provide greater financial flexibility for the group to deliver its business plans.

At the EGM, Permodalan Nasional Berhad (PNB) reconfirmed its support to subscribe in full to its rights shares with free warrants entitlement as well as excess rights shares, which may result in it having a 40% shareholding of the group’s enlarged share capital post-rights issue. Shareholders also voted overwhelmingly for the resolution that called for an exemption for PNB to make a mandatory takeover offer in view of its enlarged shareholding.

In addition, shareholders supported the proposed Executive Share Option Scheme (ESOS), a key component to ensure continuity in leadership of the senior management to deliver the group’s strategic plan.

Sapura Energy has built strong foundations in each of its businesses and is positioned for continued growth. “Over the last three years, Sapura Energy has invested in building capabilities and expertise, as well as world-class assets. These investments are part of our strategy to be ready for the industry upturn and we are progressively seeing the returns on our investments,” said Tan Sri Shahril.

Recently, Sapura Energy strengthened its presence in Mexico and Malaysia with new contract wins, valued at approximately RM1.75 billion, from Hokchi Energy, ENI Mexico and for Pan Malaysia Underwater Services.

The group marked a significant milestone in its growth strategy as one of the latest entrants into Saudi Aramco’s Long-Term Agreement (LTA) programme, one of the most sought-after in the industry. Joining the major league of international service providers as an LTA contractor, Sapura Energy will participate in bids for engineering, procurement, fabrication, transportation and installation (EPCI) contracts by Saudi Aramco. The LTA programme will be for a period of six years, with options for extension.

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 forwardlooking 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.