Sapura Energy Berhad announced internal austerity measures to mitigate the impact of the COVID-19 pandemic and the resulting low oil prices.
Sapura Energy President and Group Chief Executive Officer Tan Sri Shahril Shamsuddin announced its leadership team will be taking a fifty percent cut in salaries with immediate effect, in a note to employees today.
“As leaders, it is imperative that we take the hit as much as we can to protect our people, particularly those who are most vulnerable in our ranks.
“In the past year, we have done a lot of work to strengthen the company, including growing our top line and improving efficiencies in the way we operate. However, COVID-19 and low oil prices have impacted our financial strength. To sustain our business, we need to implement immediate austerity measures to preserve our cash flow,” said Tan Sri Shahril.
The austerity measures also include readjustment of employees’ salaries between five to forty five percent across the board effective after Ramadhan; and the reduction of workforce.
“As a principle we will ensure those with lower income are less burdened by these cuts,” said Tan Sri Shahril, acknowledging the decision may be hard on many of the employees.
Tan Sri Shahril Shahril also assured his employees that the leadership has built an agile strategy to navigate Sapura Energy out of this storm, which has adversely impacted many other businesses.
“The industry landscape will be tough moving forward but if we maintain our resilience, we will come out of this leaner and stronger,” he concluded.
Cautionary note: “Sapura Energy”, “the group” and “the company” are used for convenience where references are made to Sapura Energy Berhad in general. Similarly, words like “we”, “us” and “our” are used to refer to Sapura Energy Berhad in general or to those who work for the company and its subsidiaries, where relevant. This press release may contain forward-looking statements. All statements other than statements of historical facts included in this press release, including, without limitation, those regarding our financial position, financial estimates, business strategies, prospects, plans and objectives for future operations, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which we will operate in the future. Such forward-looking statements reflect our current view with respect to future events and are not a guarantee of future performance. Forward-looking statements can be identified by the use of forward-looking terminology such as the words “may”, “will”, “would”, “could”, “believe”, “expect”, “anticipate”, “intend”, “estimate”, “aim”, “plan”, “forecast” or similar expressions and include all statements that are not historical facts.