THE Ministry of Finance (MOF) Incorporated is expected to help Sapura Energy Bhd, according to a news report.

Citing sources familiar with the discussions, The Edge weekly said MOF Inc is looking into an assistance package for Sapura Energy.

“From what I know, it is MOF Inc that will step up (and lend a helping hand to Sapura Energy),” said the business weekly.

“What is being discussed at present is some sort of assistance package… it could be a grant of some sort and it could be announced soon.”

Last week, Minister in the Prime Minister’s Department (Economy) Mustapa Mohamed said careful consideration must be taken as the oil and gas industry is a strategic one, and Sapura Energy is the second largest integrated oil and gas service provider in the world.

“Although the proposal does not involve government funds, Putrajaya still needs to seriously mull it over before making a decision as it owns Petronas,” said the Jeli MP.

“We are aware that many small- and medium-sized companies in the industry are facing difficulties; Sapura Energy is among the affected big companies.”

Sapura Energy hit the headlines recently after its short-term debt commitments of RM10.66 billion at end-January came to light.

Further to that, it was reported that the company’s financing costs for financial year 2022 (ended January 31) came to RM521.87 million.

In FY2022, Sapura Energy suffered a net loss of RM8.89 billion from RM4.13 billion in revenue.

At the time, the company had cash and cash equivalents of RM717.75 million and short-term borrowings of RM10.66 billion. Its accumulated losses were RM13.52 billion. 

Although there was some talk that Petronas would take over the company and inject fresh capital, the speculation was later denied by Petronas. – May 21, 2022.