KUALA LUMPUR (Dec 14): Sapura Energy Bhd has been granted a second extension of up to May 31 next year to submit its Practice Note 17 (PN17) regularisation plan, which was supposed to be due on Nov 30, 2023.
“The extension of time would enable the company to continue building a robust regularisation plan based on the ongoing debt restructuring exercise, which is well underway following the confirmation for its proposed restructuring scheme approval-in-principle from the Corporate Debt Restructuring Committee,” said Sapura in a stock exchange filing on Thursday (Dec 14).
Shares of Sapura were the most actively traded on Thursday across all Bursa securities, with 193.68 million shares changing hands though its share price was unchanged at five sen, valuing it at RM798.95 million.
The stock piqued investors’ interest after receiving in-principal approval from its RM10.3 billion lenders for its proposed debt restructuring scheme.
The group recorded core net loss of RM390.1 million for the nine months ended Oct 31, 2023 (9MFY2024), more than Public Investment Bank's full-year net loss estimate of RM297.2 million and the street's forecast of RM256.5 million. The variance was broadly due to the underperformance of the group's engineering and construction as well as operations and maintenance divisions.
Sapura’s order book stood at RM5.4 billion, while its joint ventures and associates held another RM3.6 billion.
“Challenges to access working capital and bank guarantees remain, however, until its financial condition is fully resolved,” said Public Investment Bank, which maintained its 'underperform' call and target price of 3.5 sen.