KUALA LUMPUR (March 1): Sapura TMC Sdn Bhd, a wholly-owned unit of Sapura Energy Bhd, has requested bondholders to waive any default in relation to its RM10 billion financing facilities issued under a multi-currency sukuk issuance programme that fall due on March 31, 2022.
“As facility agent, we attach herewith the self-explanatory letter dated Feb 25, 2022 from Maybank Trustees Bhd enclosing the special resolution in writing for the sukukholders' consent in respect of the issuer's request to waive any default or event of default which may arise as a result of any events or circumstances arising from the last date of the waiver period as required pursuant to clause 23 of the intercreditor agreement,” said Maybank Investment Bank Bhd in a filing with Bank Negara Malaysia’s Fully Automated System for Issuing/Tendering (FAST) website.
According to Cbonds' website, Sapura TMC’s outstanding bonds that fall due on March 31, 2028 are: VK210102 (RM2.82 billion), VK210103 (RM487.87 million), VK210104 (RM179.85 million), VK210105 (RM168.07 million), VK210106 (RM61.96 million), VK210107 (RM760.94 million), VK210108 (US$49.70 million), VK210109 (RM741.11 million), VK210110 (RM169.62 million), VK210111 (RM411.86 million), VK210112 (RM41.50 million), VK210113 (RM538.19 million), VK210114 (US$74.83 million), VK210291 (RM74.44 million).
A year ago on March 30, 2021, Sapura TMC had raised the funding through the execution of multi-currency financing facilities.
The facilities comprise two term loan facilities of approximately US$602 million (RM2.5 billion) and RM906 million respectively, and unrated sukuk murabah amounting to US$125 million (RM518.5 million) and RM6.38 billion.
The facilities have a tenure of seven years and are guaranteed by Sapura Energy. It comes with the condition that its largest shareholder Permodalan Nasional Bhd (PNB) continues to have over 33% in the oil and gas outfit in the period.
PNB currently holds 40.4% equity interest in the Sapura Energy.
The refinancing exercise had been long-awaited by the company, which has been swinging between profit and huge losses since 2016.
As at end-October 2021, the group had borrowings — all short-term — of RM10.73 billion.
In terms of financial performance, the group sank into a net loss of RM2.28 billion for the nine months ended Oct 31, 2021, compared with a net profit of RM55.16 million in the corresponding period a year earlier, primarily due to 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.
Cumulative group revenue fell 6% to RM3.67 billion from RM3.9 billion, primarily due to the lower revenue from its operational and maintenance business.
Prior to this, the group had been making losses for two straight years in the financial year ended Jan 31, 2020 (FY20) and FY21.
It recorded a loss after tax and minority interest of RM160.9 million in FY21, a significant reduction from the RM4.6 billion loss after tax and minority interest posted in FY20. This was primarily due to improvement in project margins from the engineering and construction (E&C) business segment, lower net finance cost and a reduction in net foreign exchange losses and restructuring expenses.
The group’s revenue declined 17% year-on-year to RM5.3 billion compared to the RM6.4 billion recorded in FY20. This is reflective of the pandemic’s disruptive impact on the group’s business as it incurred lower revenue from the E&C and drilling business segments in line with the progress of projects being executed and lower effective day rates that resulted from restricted movement and lockdown measures in multiple jurisdictions brought about by the Covid19 global pandemic.
Shares in Sapura Energy were unchanged at four sen at noon market break, giving the group a market capitalisation of RM693 million.