save malaysia!
Bailout for Sapura? Stop choking “golden goose” Petronas, economist fumes
savemalaysia
Publish date: Mon, 16 May 2022, 08:26 AM
IRRITATED by calls to get Petronas to bailout the beleaguered Sapura Energy Bhd (SEB), an economist took to social media to remind all quarters to leave the national oil giant alone.
“You want Petronas to bail out its vendor? Rubbish. At the same time, they want dividends from Petronas.
“Who knows, maybe they will get Petronas to pay for East Coast Rail Line (ECRL) later. Let us choke Petronas to death,” said economist Nungsari Ahmad Radhi.
On May 12, former prime minister Datuk Seri Najib Tun Razak suggested for Petronas to acquire SEB to avoid the company from being declared bankrupt.
He added that Petronas has the expertise to revitalise the company. The Pekan MP also mooted for SEB to be given a Government-guaranteed bank loan.
“After Petronas has acquired SEB, the national oil company can guarantee its RM7 bil worth of contract and resolve it, in addition to providing a solid working capital for the O&G company.
“Once SEB has been rejuvenated, Petronas can sell it off. When that happens, Petronas and Amanah Saham Bumiputera will benefit,” Najib said in a debate with Opposition Leader Datuk Seri Anwar Ibrahim.
On that note, Nungsari said that Petronas should be contributing to the National Trust Fund (KWAN) to secure the nation’s finances for future generations.
Instead, he added, the Government dipped into KWAN funds to purchase COVID-19 vaccines as Putrajaya did not have money back then.
“It looks like we keep spending without even considering to need to save for our future generations. The time will come when we will no longer have petroleum generated funds,” Nungsari quipped.
Expand the economy
The veteran economist added that the Government has to do more to expand other sectors of the economy to diversify its revenue stream instead of depending on petroleum cash alone.
“And Petronas itself is not doing that great as we continue to depend on it. Its position as a Fortune 500 company is taking a toll.
“For instance, in 2020, Petronas lost RM21 bil but still had to provide a dividend of RM34 bil to Putrajaya,” Nungsari mentioned.
In report published by the Yusof Ishak Institute (ISEAS) entitled “Malaysia’s Oil and Gas Sector: Constant Expectations despite Diminishing Returns”, the think-tank urged Putrajaya to revise their expectations of the oil and gas (O&G) sector in general, particularly Petronas.
“While expectations of the O&G sector have been constant, possibilities of endlessly tapping this resource to underpin public spending, continuously boost GDP and promote domestic entrepreneurship are rapidly diminishing.
“These unchanging expectations also place considerable pressure on Petronas to continue making substantial contributions to public coffers.
“Unless mitigated, this threatens the ability of the company to remain viable and to stay at the technological forefront,” the report noted. – May 15, 2022
https://focusmalaysia.my/bailout-for-sapura-stop-choking-golden-goose-petronas-economist-fumes/
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Discussions
Be the first to like this. Showing 16 of 16 comments
What cleaned! Harapan added another 200 billion in only 22 months to our national debt!
2022-05-17 23:13
You know, for 10 years, Najib never touch Petronas money! Barely days into administation, Harapan took 100 billion and totally waste Petronas cashpile!
Or, did i mention how Mahathir also used PNB to bailout Sapura! And it was epic disaster!
Sapura has strategic assets which Petronas can take advantage off! And can sell at profit if the savaging is successful!
2022-05-18 12:32
Do not be silly lah!
PH govt is only 22 mths mah!
The Petronas Money are used by PH Govt....to honor the debts of the Previous Najib BN Govt due to mismanagement mah!
Lu tau boh ?
Posted by Tobby > 10 minutes ago | Report Abuse
You know, for 10 years, Najib never touch Petronas money! Barely days into administation, Harapan took 100 billion and totally waste Petronas cashpile!
Or, did i mention how Mahathir also used PNB to bailout Sapura! And it was epic disaster!
Sapura has strategic assets which Petronas can take advantage off! And can sell at profit if the savaging is successful!
2022-05-18 12:47
To put this is proper perspective, all these while is due BN govt excessive & abuses that impacted the Msian economy mah!
2022-05-18 12:49
Lu tau boh ?
The sapnrg omv Rm 6b value....is due Brent at USD 60 to 70 mah!
Now Crude at Usd 110 should be value at more than Rm 10b loh!
But selling the 50% oil upstream....is just enough to payoff the bank loan loh!
We need good management to steer the business & create wealth to sustain the business for long term success mah!
Posted by jklkk911 > 5 minutes ago | Report Abuse
Sapura's 50% stake in SapuraOMV is value at around RM6b.
If I am Petronas, and offering RM0.30 per share. It would cost only RM6b to take over Sapura.
I would then approve all the Covid claim and give Sapura more job so it will be back to profit.
Keep SapuraOMV and relist the other unit back in a few years.
Nothing too lose.
2022-05-18 13:03
Lu tau boh ?
The sapnrg omv Rm 6b value....is due Brent at USD 60 to 70 mah!
Now Crude at Usd 110 should be value at more than Rm 10b loh!
But selling the 50% oil upstream....is just enough to payoff the bank loan loh!
We need good management to steer the business & create wealth to sustain the business for long term success mah!
Posted by jklkk911 > 5 minutes ago | Report Abuse
Sapura's 50% stake in SapuraOMV is value at around RM6b.
If I am Petronas, and offering RM0.30 per share. It would cost only RM6b to take over Sapura.
I would then approve all the Covid claim and give Sapura more job so it will be back to profit.
Keep SapuraOMV and relist the other unit back in a few years.
Nothing too lose.
2022-05-18 13:03
Raider! Better buy Hengyuan! I know you got trap big time when Hengyuan was at it's peak! Yeah, you are still holding hengyuan at highest so better average down now!
About stocks, we all know you always buy at peak! So you ranting about stocks is as good as rubbish!
2022-05-18 13:54
Tobby,
Pls do yourself a favor loh!
Stop acting like a tukang tilik loh!
Bcos u r brady useless in this area mah!
2022-05-18 14:16
Raider! Maybe it's time for you to face the mirror! I mean, tell me, what stock have your recommended actually make money! All i know is that you always screaming and shouting promoting them at the peak!
2022-05-18 14:30
HAHAH sapura only umno will support it Just like many failed GLC time to let them go the policy failed them nothing can revive it i can vouch for that in my experience with one GLC being bailed forever FAILURE old habits old agendas new shirt but OLD self
Najibb mentioning this reli make ppl laugh , all the WHITE HORSE projects so many so called gonna help economy including 5g DNB waiting to fail and fall GREED will not work
2022-05-18 20:47
Do not get confuse by politics, emotion & fear mah!
Assess it base on viability and its value mah!
For example Sapnrg 50% of its joint venture with OMV already worth Rm 10b....enough to pay all its debt mah!
But selling that will....mean msian has lost control of a viable highly profitable oilfield mah!
2022-05-19 08:44
The most recent raider recommendation on sapnrg 3.5 to 4 sen make alot of money mah!
It is all there mah!, All documented mah!
Lu tau boh ?
Posted by Tobby > 18 hours ago | Report Abuse
Raider! Maybe it's time for you to face the mirror! I mean, tell me, what stock have your recommended actually make money! All i know is that you always screaming and shouting promoting them at the peak!
2022-05-19 08:46
The most recent raider recommendation on sapnrg at 3.5 to 4.0 sen make alot of monies loh!
It is all there and well documented mah!
Lu tau boh ??
Posted by Tobby > 18 hours ago | Report Abuse
Raider! Maybe it's time for you to face the mirror! I mean, tell me, what stock have your recommended actually make money! All i know is that you always screaming and shouting promoting them at the peak!
2022-05-19 08:48
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Tobby
Dumbass economist! Harapan took 100 billion out of Petronas and wasted it for nothing! For Petronas to bailout Sapura is the most strategic thing! It's a total win for Petronas to recoup the 100 billion wasted by Harapan!
2022-05-17 23:01