PRACTICE Note 17 (PN17) company Sapura Subsea Services Sdn Bhd, a subsidiary of Sapura Energy Bhd, has clinched a significant contract to provide underwater services for Pan Malaysia operations, catering to Sarawak Shell Bhd (SSB) and Sabah Shell Petroleum Company Limited (SSPC).
The contract, effective from Jan 31, 2024, spans a period of five years and encompasses services for Petronas group of companies and petroleum arrangement contractors. As outlined in the filing with Bursa Malaysia, the agreement operates on a call-out basis with pre-negotiated unit rates.
The scope of services includes the deployment of diving support vessels, air and saturation diving systems, remotely operated vehicles, and other relevant underwater services. These operations will primarily focus on maintaining and supporting underwater facilities in the waters of Sabah and Sarawak.
Sapura Energy anticipates a positive contribution to its earnings for the financial year ending Jan 31, 2025, and subsequent years, owing to this lucrative contract.
However, the company faces a deadline of May 31, 2024, to submit its financial regularisation plan to the pertinent regulatory authorities. Sapura Energy was categorised as a PN17 company on May 31, 2022, indicating its obligation to rectify its financial standing.
As of the latest trading update, Sapura Energy’s shares closed at 5 sen each, reflecting a market capitalisation of RM918.8 mil. – April 5, 2024
Main photo credit: NST
