Once a Market Leader, Sapura Energy Faces Collapse Amid Severe Financial Struggles
Once heralded as a titan in Malaysia’s oil and gas sector, Sapura Energy now faces an uncertain future, burdened by billions in debt and a struggling market presence. The company, which was formed through a high-profile merger between two influential figures—Shahril Shamsuddin and Dr. Mahathir Mohamad’s son, Mokhzani Mahathir—has fallen dramatically from its former glory.
In 2013, its shares peaked at RM4.95, but today they are worth a mere RM0.045 each, reflecting the company’s steep decline. The company’s largest shareholder, Permodalan Nasional Bhd (PNB), one of Malaysia’s largest state-owned investment firms, has watched as the firm has spiralled into financial turmoil.
The downturn is attributed to a series of challenges: sluggish global oil demand, falling oil prices, and an overall unstable market environment. Additionally, the company has seen a sharp decline in job orders, further exacerbating its financial strain.
Despite the significant challenges, Sapura Energy is holding on to hope with the assistance of a government rescue package, as it strives for survival amidst an uncertain future.
