KUALA LUMPUR: Local tycoon Tan Sri Halim Saad, who is the vice-chairman of Sumatec Resources Bhd, has assured shareholders that he will continue to support the company for as long as possible.
“I have promised the board personally that I will continue to support the company as much as I can,” he told reporters at its AGM today.
He has been supporting most of the company’s costs and expenses within his personal capacity but declined to disclose the amount he has invested so far.
Asked how much more he intends to invest in the company, Halim, who holds a 12.7% stake in Sumatec said: “As much as I can afford.”
He said the group is working on a regularisation plan that would address its PN17 status, legacy debt or shipping debt amounting to RM230 million owed to creditors and its future operations.
He added that the plan, which is being drafted based on the assumption of oil price at US$64 (RM255.36) per barrel, will be submitted to Bursa Malaysia “very soon”. At the current oil price of US$75 per barrel, Sumatec makes a profit of US$30 to US$35 per barrel.
In April, the group was classified as a PN17 company following its external auditors Grant Thornton Malaysia’s disclaimer opinion on its financial statements ended Dec 31, 2017 (FY17). It has about 10 months to submit its regularisation plan.
Sumatec recorded a net loss of RM113.95 million and RM171.06 million at the group and company levels respectively, as well as a negative cash flow of RM15.33 million and RM9.86 million for FY17.
In the first quarter ended March 31, 2018, Sumatec posted RM457,000 in profits compared with a net loss of RM743,000 a year ago.
Earlier in March, Sumatec had received an offer from Markmore Energy (Labuan) Ltd (MELL) for the development of a condensate extraction plant (CEP), as well as an offer from a contractor for the development and financing of the oil field for up to US$120 million (RM478.8 million).
The plant facilities comprise a gas and liquid separator, contaminant removal unit, methane and ethane separation unit, CEP fractionation unit and propane and butane treater. It will take 18 months from the date of signing of the gas supply agreement to be completed.
MELL holds the entire interest in CaspiOilGas LLP, which is the concession owner and operator of the Rakushechnoye oil and gas field located in Kazakhstan. Halim is the director and 99.9% shareholder of MELL.
However, Halim said Sumatec’s board of directors have yet to decide on MELL’s offer and nothing has been formalised at this juncture.
Source: The Sun Daily