Petra Energy Bhd is monetising its non-performing assets through the sale of two marine vessels for a combined cash consideration of approximately RM61.31 million, as the company seeks to optimise its asset portfolio and strengthen its financial position.
The disposal will be carried out by Petra Marine Sdn Bhd, a wholly owned subsidiary of Petra Energy, involving the sale of two offshore vessels to international buyers.
Petra explained that it is selling these vessels to monetise non-performing assets, with proceeds of the deals to be used as working capital.
The first transaction involves the sale of Petra Orbit, an offshore support workboat, to Beaufond Swissline FZ-LLC, the commercial affiliate arm of UAE-based chemical manufacturer Beaufond plc, for RM29.63 million.
The second agreement involves the disposal of Petra Endeavour, a 300-man work barge, to Indian company AJR Oil & Gas Engineering Services for RM31.67 million.
Both transactions are expected to be completed by the end of September, subject to the successful delivery of the vessels to their respective buyers.
Under the sales agreements, Beaufond and AJR will each provide initial deposits of 20% and 25%, respectively, following the formal signing of the agreements.
In its filing with Bursa Malaysia, Petra Energy said the vessel disposals are part of its strategy to monetise non-performing assets, allowing the company to unlock value from underutilised assets while improving capital efficiency.
The proceeds generated from the sales will be used as working capital to support the company’s ongoing business operations and future requirements.
Both vessels were built in 2009. The Petra Orbit, which is approximately 17 years old, carries a book value of RM25.01 million, while the Petra Endeavour has a book value of RM30.06 million as at the proposal date.
The disposal marks Petra Energy’s continued effort to streamline its asset portfolio and focus on improving operational flexibility amid changing market conditions in the offshore and marine services sector.
By converting ageing or underperforming assets into cash resources, the company aims to enhance liquidity while creating greater room to support its core business activities.
Following the announcement, Petra Energy’s shares declined 3.33% to 72.5 sen per share, giving the company a market capitalisation of approximately RM232.7 million. Despite the decline, the stock has gained 29.46% year-to-date.
