Alam Maritim gets CDRC’s help to restructure debt

PETALING JAYA: Alam Maritim Resources Bhd, which narrowed its losses in the first quarter ended March 31, will be getting assistance from Bank Negara Malaysia’s Corporate Debt Restructuring Committee (CDRC) to rationalise its debt.

The group, which received approval from the CDRC via a letter dated May 24, has 60 days to come up with a proposed debt restructuring scheme. The restructuring programme is limited to a year.

CDRC will act as mediator between Alam Maritim and some of its subsidiaries, joint-venture and associate companies, and its respective financiers and sukuk holders, “to restructure their respective financing facilities to a reasonable rate and within a practical tenure and to preserve liquidity” amid the challenging conditions in the oil and gas sector.

The company registered a net loss of RM11.89 million in the quarter under review after having registered a net loss of RM19.19 million in the same quarter last year.

The offshore service provider’s revenue declined by 58.4% to RM20.22 million in the quarter under review against the RM48.65 million registered in the preceding year’s corresponding quarter as revenue from its offshore support vessels fell by 49.5%, owing to lower average utilisation rate of its chartered vessels and daily charter rates.

The business outlook for Alam Maritim group is influenced by the level of capital expenditure spending by the Oil Majors which is in line with the volume of exploration and production activities.

“Based on the recently issued Petronas Activity Outlook for 2017-2019, the average domestic capital expenditure is still expected to be invested primarily in upstream activities, but at a lower proportion,” its board of directors said in a filing with Bursa Malaysia.

The board said it will continue to manage and implement strategies to ensure that shareholder value is enhanced.