KUALA LUMPUR (Aug 19): Sapura Energy Bhd is disposing of three drilling rigs to a UK-based cash buying company for US$8.2 million (RM35.14 million).
In a Bursa Malaysia filing on Friday (Aug 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.
"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," added Sapura Energy.
Proceeds from the sale will be used for Sapura Energy's working capital subject to multi-currency facilities' conditions, the group said.
Sapura Energy's share price settled 11.11% or half a sen higher at five sen on Friday, bringing a market capitalisation of RM799 million.