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How  SAPNRG 5218  SAPURA ENERGY BERHAD got into the mess it is in

KUALA LUMPUR (April 23): Sapura Energy Bhd is on the verge of bankruptcy, only three weeks shy of the 10-year anniversary of the mega-merger between SapuraCrest Petroleum Bhd and Kencana Petroleum Bhd, which created SapuraKencana Petroleum Bhd back in mid-May 2012.

Its name was changed to the current one at end-March 2017.  

From a merger valuation of RM11.85 billion, Sapura Energy’s market capitalisation swelled to RM28 billion in early 2014, following the acquisition of Seadrill’s rig business and Newfield’s Malaysian assets.  At its peak, Sapura Energy was the world’s second largest integrated oil and gas service provider.

However, oil prices crashed in mid-2014 and with that, Sapura Energy’s fortunes followed suit. The company started chalking up losses in the financial year ended Jan 31, 2016 (FY16) and has been loss-making annually since then except for FY17. Its market capitalisation today is a mere RM560 million even after a RM4 billion cash call ⁠— a rights issue in 2019.

What went wrong at Sapura Energy?

The Edge has reported extensively on the troubles plaguing the oil and gas service provider in the past few years.

This week’s cover story presents a comprehensive and detailed analysis of key events from the time of the mega-merger in 2012.

It also presents The Edge’s views on what went wrong and what can be done.

Readers can also make their own conclusions from the facts and figures compiled from Sapura Energy’s annual reports and other official announcements.

Get the April 25 issue of The Edge Malaysia weekly to find out what went wrong exactly at Sapura Energy.


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