Can Sapura Energy Really Repay Govt S Rm1 1b Fadhli Asks

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PAS leader Ahmad Fadhli Shaari has questioned Prime Minister Anwar Ibrahim’s claim that the RM1.1 billion lifeline thrown to Sapura Energy Berhad should be considered a loan.
The Islamist party’s information chief said that based on Sapura Energy’s financial well-being, it is unlikely that the money can be paid back.
“If the investment (by the government) is really profitable, why aren’t private investors interested?
“The lack of private interest shows that there is a high risk involved, but the government still chooses to take on the risk using public funds,” he said in a statement today.
The RM1.1 billion channelled through a Ministry of Finance (Incorporated) special purpose vehicle is earmarked for the sole use of paying off vendors to which Sapura Energy owed money.
The company has been making continued losses since 2019 and is in considerable debt.
Anwar, however, assured today that the public funds would not be “burned” and expressed confidence that the new management put in charge of Sapura Energy can turn a profit to pay back the funds.
Sapura Energy is currently undergoing a debt restructuring exercise and has a “white knight” - believed to be a Middle Eastern oil and gas company - that would be providing the company with a capital injection of RM1.8 billion.
This is not the first time that Sapura Energy has received a capital injection, however.
The loss spiral began just one year after Permodalan Nasional Berhad invested RM2.68 billion into the company in 2018.
Meanwhile, Fadhli said that the fact that the government had to intervene also shows that Sapura Energy is not competitive.
He said if share prices take a tumble, then the government risks losing its entire RM1.1 billion convertible shares investment. - Mkini

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