Petronas denies report on taking stake in Sapura Power


KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) has categorically denied studies and speculations on purported “talks with the federal government on a proposal to take a major stake” in Sapura Power Bhd (SEB).

“The group has at all times been and can proceed to be strictly guided by a longtime framework for any funding or divestment consideration,” it mentioned in an announcement immediately.

The nationwide oil and gasoline (O&G) firm pressured that it stays dedicated to working carefully with O&G, Providers and Gear (OGSE) gamers, leveraging their experience and functionality as actions enhance in keeping with the business’s restoration from the influence of COVID-19.

SEB is at the moment embroiled in monetary hassle after reporting a headline lack of RM6.6 billion within the fourth quarter of 2022, primarily on account of impairments amounting to a whopping RM5.4 billion.

The principle reason behind the disappointing efficiency is its legacy contracts, leading to liquidation damages, price overruns, unapproved claims, contract de-scoping and COVID-19 further prices, Public Funding Financial institution mentioned in its analysis report.

“Liquidity considerations stay, additional hampering the turnaround efforts whereas limiting its progress prospect,

“This has additionally affected sure mission execution as a result of lack of assist from suppliers given the quantity nonetheless owed,” it mentioned.

The funding financial institution additionally famous that the group is within the midst of negotiating with its distributors on excellent funds and lenders by means of current or new amenities and below the Scheme of Association.

Shifting ahead, it mentioned the group will nonetheless be within the crimson as revenue margins will stay unstable given the difficulties in managing prices arising notably from its legacy initiatives. Liquidity considerations stay, additional hampering the turnaround efforts whereas limiting its progress prospect.

At 11.50 am, SEB’s shares rose half-a-sen to three.5 sen with 27.15 million shares traded. – Bernama

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