Cash-strapped Sapura Energy is selling a pipelay and crane vessel to an Abu Dhabi Ports company.
The Malaysian contractor said on Monday that one of its subsidiaries has entered into a memorandum of agreement to sell the Sapura 3000 to Safeen Feeder Company for $71.5 million.
It expects the deal to be completed by mid-July.
Sapura described the sale as part of a reset plan for the group, “which focuses on Sapura Energy’s long-term sustainability by… improving its liquidity position, streamlining its operating model and providing greater flexibility for strategic growth”.
The cash will be used for working capital and to reduce borrowings.
The Sapura 3000 is a heavylift pipelaying vessel, equipped with a 3000-tonne-capacity revolving mast crane, capable of executing deep-water and shallow-water projects.
It was built in 2008 and is under the Malaysia flag.
In March, Sapura reported a net loss of 8.9 billion ringgit ($2.1 billion) for the financial year ended 31 January and recorded an operating loss of 2.2 billion ringgit on the back of revenues totalling 4.1 billion ringgit.
It has acted to resolve liquidity challenges, including negotiations with clients of existing contracts, with the aim of “amicable solutions to recover or limit losses”.
The High Court of Malaysia has granted two orders, including a restraining order, allowing Sapura to begin a court-sanctioned debt restructuring exercise with creditors while continuing to operate.