KUALA LUMPUR (Dec 14): Sapura Energy Bhd topped the list of most active stocks in Thursday morning trading after the oil and gas service provider received in-principle approval for its proposed debt restructuring plan. Ta.
At the time of writing, the counter rose 10% or 0.5 sen to 5.5 sen per share, giving it a market capitalization of RM790.96 million.
Trading volume rose 22% to 117.16 million from Wednesday’s trading volume of 96.12 million, making it the most actively traded exchange on Bursa Malaysia.
Twenty-one months after receiving a court injunction to undertake a proposed adjustment scheme as part of a debt restructuring plan, Sapura Energy has received a RM10.3 billion loan in principle from its lenders with the support of corporate legislation. Approved. The Malaysian Debt Restructuring Commission participated as an intermediary.
This would go some way to helping the group move out of Practice Note 17 (PN17) status, but regulatory approval for an extension to submit a normalization plan has yet to be received, Public Investments said. Bank Bhd warned in a memo.
In October, Sapura Energy filed an application to extend the deadline for submitting its PN17 regularization plan until May 2024, pending approval from the local stock exchange regulator.
The group recorded a core net loss of RM390.1 million for the nine months ended October 31, 2023 (September 31, 2024), which was higher than Public Investment Bank’s full-year net loss forecast. This exceeded the forecast of RM297.2 million and the street estimate of RM256.5 million. This difference was primarily due to the weaker performance of the Group’s Engineering and Construction and Operations and Maintenance divisions.
The order backlog was 5.4 billion ringgit. Meanwhile, its joint ventures and associated companies held an additional RM3.6 billion. “However, challenges of access to working capital and bank guarantees remain until the financial situation is fully resolved,” Public Investment Bank said, maintaining its “underperform” call and price target of 3.5 sen.