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Sapura can repay debts, says Najib citing its track record

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Former prime minister Najib Razak says the oil and gas company was able to reduce its total debt from RM18.5 billion in 2017 to its current RM10.3 billion.

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The company, which is RM10.3 billion in debt, is currently undergoing a debt restructuring exercise.

PETALING JAYA:
Former prime minister Najib Razak has backed Sapura Energy Bhd’s turnaround bid, saying the oil and gas giant is capable of repaying its debts if it is allowed to continue operating.

Sapura’s total debts currently stand at RM10.3 billion, and the company is currently undergoing a debt restructuring plan involving banks, vendors and contractors.

Najib, who has been at the forefront of calls for the government to help Sapura, said the company, which still has contracts worth RM7 billion, had a track record of reducing its debt.

In a Facebook post today, the Pekan MP said Sapura managed to reduce its total debt from RM18.5 billion in 2017 to its current RM10.3 billion.

He also said Sapura has repaid a total of RM15 billion in principal and interest over the last eight years.

“This means that if allowed to continue operating and Sapura’s cash flow constraints are resolved, the company, which still has contracts worth RM7 billion, will be able to repay all its debts,” he said.

Najib said Sapura, which had recorded profits before the pandemic, “is still viable” given the record-high oil and gas prices, and strong international demand for the company’s services.

Over 60% of Sapura’s revenue is from overseas contracts.

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