SERI KEMBANGAN: Sapura Energy Bhd is open to partnerships with global corporations for its drilling segment and is currently in talks with several potential partners.
Its president and chief executive officer Tan Sri Shahril Shamsuddin said Sapura Energy seeks more collaborative opportunities and is considering several joint ventures from potential companies in the drilling segment.
“We are in talks with several foreign companies that approached us, and we are still looking for the best potential partnership with the best price.
“The group is looking for a partnership arrangement similar to its recent agreement signed with Austria’s OMV Aktiengesellschaft (OMV AG),” he said after Sapura Energy’s extraordinary general meeting here today.
Also present was Sapura Energy chairman Datuk Hamzah Bakar.
Shahril said to date, Sapura Energy owns 16 assets under its drilling segment that can be used for a period of 15 to 20 years.
"The utilisation rate for these assets is now at 35 per cent, accounting for about six to seven assets," he said.
Meanwhile, Shahril said Sapura Energy has received shareholders’ approval for its proposed rights issue to raise RM4 billion.
The fund injection exercise is expected to create better value for shareholders and return the company to profitability amidst improved opportunities for growth.
The company plans to use the proceeds from the rights issue to reduce its estimated RM16 billion debt and allow it to have greater financial flexibility besides a stronger balance sheet.
Once Sapura Energy successfully raises the funds, it would save about RM174 million per annum in interest payments on borrowings and reduce net gearing to 0.94 times.
The rights issue exercise will also increase the number of company shares to 15.98 billion shares from 5.99 billion shares, with a further expansion to 19.37 billion shares once the Islamic redeemable convertible preference shares (RCPS-i) in the company and free warrants are fully converted.
As at the end of November 2018, its order book stands at RM18.2 billion with prospects for more, including its latest accomplishment on being selected to participate in Saudi Aramco’s Long-Term Agreement programme for engineering, procurement, construction and installation work.