Sapura Energy Berhad is disposing of three drilling rigs to a UK-based cash buying company for $8.2 million (RM35.14 million).
In a Bursa Malaysia filing on Friday, August 19, Sapura Energy said three of its subsidiaries — Sapura Drilling T-19 Ltd, Sapura Drilling T-20 Ltd and Sapura Drilling Setia Ltd — have signed deals to sell the rigs to NKD Maritime Ltd.
The group said the disposal of the rigs is part of its focus on long-term sustainability and improving its liquidity position, streamlining its operating model and providing greater flexibility for strategic growth.
Sapura Energy said: “The rigs are either ageing or not technically competitive. Based on the market demand, the company does not see any financially viable prospects that could cater for the rigs to be reactivated in the foreseeable future.
“Therefore, the rigs have a high probability of being stacked in the coming years, which exposes the company to more costs and risk of deterioration.”
The group said that proceeds from the sale will be used for Sapura Energy’s working capital, subject to multi-currency facilities’ conditions.
Sapura Energy’s share price settled 11.11 percent, or half a sen, higher at five sen on Friday August 19, bringing a market capitalisation of RM799 million.
For more information visit www.sapuraenergy.com
