KUALA LUMPUR (March 1): Sapura Energy Bhd has been served with another winding-up petition over unpaid money, this time by Icon Offshore Bhd.

The group said its wholly-owned subsidiary Sapura Offshore Sdn Bhd was served with the petition dated Feb 21 by Icon Offshore’s subsidiary, Icon Offshore Group Sdn Bhd. 

The High Court has fixed March 17 for case management, and May 24 for hearing of the petition.

Sapura Energy said the petition was initiated after Sapura Offshore was unable to pay a sum of RM4.02 million plus interest under a consent judgment entered into by the firm and Icon Offshore Group on Dec 13, 2021.

The consent judgment was in relation to claims for the amount due under two uniform time charter party for offshore service vessels contracts.

Sapura Energy said it has been in talks with Icon Offshore on the matter and has engaged legal counsel to resolve the issue amicably.

“Pending the outcome of negotiations and receipt of such legal advice, there will be no immediate material financial and operational impact and no expected losses to the group arising from the petition,” the group said.

The group has invested RM2.62 billion into Sapura Offshore based on its audited financial statements for the financial year ended Jan 31, 2021 (FY21).

Still, Sapura Offshore is not a major subsidiary of the group as defined under Chapter 1 of Bursa Malaysia Securities Bhd’s Main Market Listing Requirements, said Sapura Energy.

On Feb 14, Sapura Energy had announced that four other wholly-owned subsidiaries of the oil and gas group — Sapura Fabrication Sdn Bhd, Sapura Project Services Sdn Bhd, Sapura Subsea Services Sdn Bhd and Sapura Pinewell Sdn Bhd — were recipients of one or more winding-up petitions for unpaid contract sums, settlement agreement sums and judgment sums totalling some RM44.15 million before interest.

On Feb 18, the group said Sapura Fabrication was served with a winding-up petition for RM70,598 for the sale and delivery of hardware. 

Sapura Fabrication and Sapura Project Services’ troubles continued on Feb 23, when both companies received petitions from their vendors for RM884,229 and RM2.19 million respectively.

A vendor close to the matter said that Sapura Energy’s soil investigation and geotechnical services provider, Sapura Geotechnics Sdn Bhd, is on the hook for RM214,650, after a suit to retrieve the fund was initiated against the latter. 

Based on the latest filing and information, Sapura Energy’s vendors-turned-creditors are claiming a combined sum of RM48.39 million prior to any additional interest.

This amount seems insignificant compared to the RM7.74  billion that the oil and gas group has invested into the subsidiaries (except Sapura Geotechnics), based on the group’s FY21 audited financial statements.

Most of the winding-up petitions are scheduled for case management and hearing in March and April. 

A denial of waiver in default from its bondholders for its RM10 billion multi-currency sukuk issuance programme due on March 31 requested by the group on Feb 25 could spell even greater trouble for Sapura Energy. 

For the nine-month period ended Oct 31, 2021, Sapura Energy posted a net loss of RM2.28 billion compared with a net profit of RM55.16 million in the previous corresponding period, due to a provision for foreseeable losses, higher project costs recognised for certain projects, lower share of profit from associates and joint ventures, and an impairment charge arising from asset held for sale.

Nine-month revenue fell 6% to RM3.67 billion from RM3.9 billion due to lower contributions from the group’s operational and maintenance business.

Meanwhile, its net operating cash flow was RM197.24 million before finance costs of RM399.68 million. Cash equivalents stood at RM589.63 million, against current liabilities of RM15.12 billion including short term borrowings of RM10.73 billion.

The last time Sapura Energy went into financial troubles in 2018, the group was rescued with a RM2.68 billion financial injection by Permodalan Nasional Bhd, which held a 40% stake in the group.

Sapura Energy’s shares closed unchanged at four sen on Tuesday (March 1), valuing the group at RM639.16 million based on 15.98 billion outstanding shares.