KUALA LUMPUR – Sapura Energy Bhd (SEB) saw heightened trading activity today, emerging as one of the top-traded stocks following a RM1.1 billion investment from Malaysia Development Holding Sdn Bhd (MDH).
The funding, via MDH’s subscription of Sapura Energy’s redeemable convertible loan stocks (RCLS), marks a crucial step in the company’s financial restructuring efforts.
By mid-morning, 99.11 million of its shares had changed hands, making it one of the most actively traded counters. SEB’s stock edged half-a-sen higher to four sen, reflecting investor interest in its turnaround efforts, Bernama reported.
In a statement, SEB confirmed the conditional funding agreement with MDH, a special purpose vehicle under the Minister of Finance (Incorporated). The investment is earmarked specifically for settling liabilities owed to Malaysian service providers operating in or supporting the oil and gas sector.
“This funding is a pivotal step in restoring the financial stability of Malaysian vendors within the oil and gas ecosystem, which had taken years to build.
“Our Malaysian vendors are predominantly small and medium enterprises (SMEs) who have endured significant financial hardship during and after the Covid-19 pandemic, and it had always been our intention to fully settle overdue payables to them,” said SEB group chief executive officer Muhammad Zamri Jusoh.
The funding follows strong support from creditors for SEB’s Composite Scheme of Arrangement, which involves the parent company and 22 of its subsidiaries under Section 366 of the Companies Act 2016.
SEB, which supports approximately 2,300 Malaysian vendors – 1,800 of them SMEs – has awarded RM7.3 billion in contracts to local vendors over the last five years. The latest investment provides relief to these businesses and strengthens the company’s long-term sustainability strategy.
Muhammad Zamri highlighted that SEB is actively developing a robust regularisation plan, moving closer to exiting its PN17 classification.
“We see SEB’s turnaround as part of the revitalisation of the Malaysian oil and gas, services and equipment sector, ensuring it is better positioned to support the nation’s energy security and sustainability goals, ultimately contributing to Malaysia’s economic development,” he added. – March 12, 2025