KUALA LUMPUR, March 14 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) ended the week slightly higher, in line with regional indices despite the weaker performance on Wall Street overnight. At 5 pm, the FBM KLCI rose 2.12 points or 0.14 per cent to 1,512.15 from Thursday’s close of 1,510.03. The market bellwether opened 10.08 points lower at 1,499.95, and moved between 1,493.29 and 1,516.25 throughout the day. On the broader market, gainers outpaced losers with 680 to 292, while 437 counters were unchanged, 1,009 untraded, and 13 suspended. Turnover was marginally lower at 3.24 billion units worth RM2.5 billion from 3.25 billion units worth RM2.90 billion on Thursday.
Sapura Energy Secures RM1.1 Billion Investment from Malaysia's Ministry of Finance to Settle Creditors
Sapura Energy Berhad (SEB) has announced that it has entered into a Conditional Funding Agreement with Malaysia Development Holding Sdn Bhd (MDH), securing RM1.1 billion in redeemable convertible loan stocks. This investment, provided by a special purpose vehicle of the Ministry of Finance (MOF), is aimed at helping Sapura Energy settle outstanding liabilities to local service providers in Malaysia’s oil and gas sector.
Key Points:
Funding for Settlement: The funds will be used exclusively to settle liabilities owed to Malaysian vendors, particularly small and medium-sized enterprises (SMEs) that have been facing financial difficulties, especially since the COVID-19 pandemic.
Support for Local Vendors: Muhammad Zamri Jusoh, CEO of SEB, emphasized the company’s responsibility to help preserve Malaysia’s oil and gas ecosystem, especially given the significant hardship faced by over 2,000 local vendors in the sector.
Focus on SMEs: Many of SEB’s local vendors are SMEs, which have struggled financially, and this funding will help ensure that overdue payables are settled, enabling vendors to recover.
Plan for Regularisation: SEB also mentioned its ongoing efforts to develop a Regularisation Plan, aimed at lifting its status as a PN17 company. This move is part of SEB’s broader turnaround strategy, which aims to strengthen Malaysia’s oil and gas services sector and contribute to the country’s energy security and sustainability goals.
Looking Forward:
With this investment, SEB is positioning itself for a revitalisation, helping the company recover financially while also supporting the local economy. The move is seen as a step towards ensuring that Malaysia’s energy sector is better equipped to meet the country’s future energy needs.
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